Why Yamana Gold Stock Is Moving Higher

Yamana Gold Inc AUY shares are trading higher Tuesday after the company announced it will be acquired by Gold Fields for $6.7 billion.

Gold Fields and Yamana entered into a definitive agreement, under which Gold Fields will acquire all of the outstanding shares of Yamana Gold. All of the outstanding Yamana Shares will be exchanged for 0.6 of an ordinary share of Gold Fields.

The transaction is expected to close in the second half of 2022. Upon closing, Gold Fields shareholders will own approximately 61% of the combined company and Yamana shareholders will own approximately 39%. 

Yamana Gold is a Canadian-based precious metals producer with gold and silver production, development stage properties and exploration properties throughout the Americas.

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AUY Price Action: Yamana Gold has traded between $3.70 and $6.40 over a 52-week period.

The stock was up 7.45% at $5.56 at time of publication, according to data from Benzinga Pro.

Photo: PublicDomainPictures from Pixabay.