M&A News: Pan American Silver (PAAS) Buys Rival MAG for $2.1 Billion

Pan American Silver (PAAS) has agreed to buy rival producer MAG Silver (MAG) for $2.1 billion.

Under terms of the deal, MAG shareholders will receive $500 million in cash and 0.755 ordinary shares of Pan American for each stock they own. The acquisition provides Pan American with a major silver mine in Mexico.

The purchase values MAG stock at $20.54, a 21% premium. The deal between the two silver producers comes amid a rally in silver prices, which have gained more than 13% this year. Rising prices have sparked consolidation among various silver miners.

Mexico Mine

The takeover gives Pan American control over MAG Silver’s 44% stake in the Juanicipio mine in Mexico, as well as two undeveloped projects: the Deer Trail mine in Utah and Larder mine in Canada. “Our acquisition of MAG brings into Pan American’s portfolio one of the best silver mines in the world,” said Pan American CEO Michael Steinmann, referring to the Mexico asset.

The Juanicipio mine produced 18.6 million ounces of silver in 2024, up 10% from the previous year, according to industry data. It is the world’s third-biggest silver mine in terms of production. The deal, which is subject to regulatory approvals, comes with a $60 million break-up fee.

PAAS stock has risen 15% this year alongside silver prices.

Is PAAS Stock a Buy?

The stock of Pan American Silver has a consensus Strong Buy rating among seven Wall Street analysts. That rating is based on six Buy and one Hold recommendations issued in the past three months. The average PAAS price target of $32.79 implies 41.40% upside from current levels.

Read more analyst ratings on PAAS stock