MAC Copper Ltd Enters Binding Agreement with Harmony Gold

On May 27, 2025, MAC Copper Limited (NYSE: MTAL, ASX: MAC) announced a significant development in its corporate strategy. The company has entered into a binding scheme implementation deed with Harmony Gold Mining Company Limited (JSE: HAR, NYSE: HMY) and its wholly owned subsidiary, Harmony Gold (Australia) Pty Ltd. Under this agreement, Harmony Australia will acquire 100% of the issued share capital of MAC Copper Ltd through a Jersey law scheme of arrangement, as per Article 125 of the Companies (Jersey) Law 1991.

Transaction Details

The terms of the scheme stipulate that MAC shareholders will receive US$12.25 (A$18.931) in cash for each share held. This transaction implies a fully diluted equity value for MAC of approximately US$1.03 billion (A$1.60 billion), representing a significant premium over recent trading prices. Specifically, the offer represents a 32.1% premium to the 30-day volume-weighted average price (VWAP) of US$9.28 per MAC share on the New York Stock Exchange, and a 32.8% premium to the 30-day VWAP of A$14.26 per MAC CHESS Depositary Interest on the Australian Securities Exchange. Additionally, the offer is 20.7% above the last closing share price of US$10.15 on the NYSE, and 22.1% above the last closing price on the ASX.

Strategic Implications for Harmony Gold

Harmony Gold, through its Australian subsidiary, aims to enhance its cash flow by integrating MAC Copper’s high-grade CSA Copper Mine into its operations. Located approximately 700 kilometers west-northwest of Sydney in New South Wales, Australia, the CSA Copper Mine is MAC’s sole asset. This acquisition is expected to provide Harmony with immediate cash flow from copper production, aligning with its strategic objectives in the green economy metals sector.

Market Reaction

The announcement has been well-received by the market, reflecting positively on both companies’ strategic directions. MAC Copper Ltd, a materials sector company based in Jersey with operations in Australia, has seen its market capitalization valued at approximately US$822.15 million as of May 22, 2025. Despite a negative price-to-earnings ratio of -10.06, the premium offered in this transaction underscores the strategic value of MAC’s assets.

For further information, stakeholders can refer to MAC Copper Ltd’s website at www.metalsacquisition.com or follow trading updates on the New York Stock Exchange. Harmony Gold’s acquisition is a strategic move to bolster its position in the copper market, leveraging the high-grade assets of the CSA Copper Mine.