MAC shares surge after $1.6bn acquisition

MAC Copper’s shares have surged more than 20 per cent over the past five days after announcement of a $US1.03 billion ($1.6 billion) acquisition by Harmony Gold.

Under a binding scheme implementation deed, MAC shareholders will receive $US12.25 per share – a 32.1 per cent premium to MAC’s 30-day volume weighted average price (VWAP) of $US9.28 and a 20.7 per cent premium to MAC’s closing share price of $US10.15 on May 23.

MAC was the largest ASX mining listing in five years back in February 2024, giving the company a dual listing on the ASX and New York Stock Exchange (NYSE).

The company owns CSA, one of Australia’s highest grade copper mines. CSA was acquired from Glencore in June 2023.

“The acquisition of the CSA copper mine in Australia is significant as it introduces a high-quality, established underground producing copper asset to the Harmony portfolio,” Harmony chief executive officer (CEO) Beyers Nel said.

“CSA is one of the highest-grade copper mines in Australia, producing (approximately) 41,000 tonnes of copper in 2024.

“The operation is a logical fit with the portfolio given it meets Harmony’s core investment criteria, including increasing free cash flow generation while improving margins at long-term expected commodity prices.”

Harmony said the acquisition supports its strategy to become a “low-cost, global gold and copper mining company through disciplined and effective capital allocation”.

The MAC board has unanimously recommended shareholders vote in favour of the scheme, in the absence of a superior proposal.

“The board believes the transaction provides MAC shareholders with a compelling opportunity to de-risk their investment and realise an attractive cash value,” MAC CEO Mick McMullen said.

If approved, the deal will add CSA to Harmony’s growing copper portfolio, including the Eva copper project in Queensland.

The scheme is expected to be implemented in the fourth quarter of 2025, subject to regulatory and shareholder approvals.