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Investors balk at $9.5-billion takeover of Canada's New Gold as acquirer's shares tumble 12%
By Tim Kiladze
The Globe and Mail, Toronto
Monday, November 3, 2025
Coeur Mining Inc. shares took a dive after the silver and gold producer announced its $9.5-billion acquisition of New Gold Inc., a takeover that, if approved, will see one of Canada's leading intermediate gold producers fall into American hands.
The deal follows Anglo American Plc's offer to buy Canada's Teck Resources Ltd. in September, marking another instance in which a respected Canadian miner is selling itself rather than bulking up by being the acquirer.
... Dispatch continues below ...
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Chicago-based Coeur hopes to buy New Gold in an all-stock deal worth roughly $12 a New Gold share, amounting to a 16% premium to New Gold's market price before the deal was announced. Coeur shareholders will own 62% of the combined company, while New Gold shareholders will own 38%.
Toronto-based New Gold owns two gold projects -- the New Afton mine near Kamloops, which also produces copper, and the Rainy River mine in Northern Ontario -- and until recently the company struggled to attract investor interest. In September 2022, New Gold's shares traded for 82 cents apiece, but its stock took off as the price of gold more than doubled and investors grew impressed by New Gold's operating results.
Before the proposed takeover, New Gold traded at roughly 1.3 times its net asset value, while its peers traded at an average of 0.75 times their net asset values, according to RBC Dominion Securities.
Coeur, which has five mines across Mexico and the United States, has also seen its shares jump over the last three years, but its stock price really took off in August and September as silver prices unexpectedly soared. The company's share price had already started to correct over the past month amid talks of a silver bubble, and Coeur's shares dropped another 11.8% Monday after the company announced the New Gold deal.
Because the takeover is an all-share transaction, Coeur's falling share price wiped out the premium offered to New Gold shareholders, and New Gold's stock closed 1% lower on the Toronto Stock Exchange on Monday. ...
... For the remainder of the report:
https://www.theglobeandmail.com/business/article-new-gold-coeur-mining-all-stock-takeover-deal/
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