MAC Copper's Stock Drops Following Regulatory Approval for Harmony Gold Takeover

MAC Copper Limited's shares fell after securing regulatory approval for a takeover by Harmony Gold. The Jersey-based company operates the CSA copper mine in New South Wales, Australia, and produces 58 underground copper mines. The acquisition is part of Harmony Gold's strategy to expand its presence in the global metals and mining market.

MAC Copper Limited (NYSE:MTAL) has seen a decline in its share price following the receipt of regulatory approval for its takeover by Harmony Gold Mining Company Limited (NYSE:HMY). The acquisition, valued at $1.03 billion, is a significant move for Harmony Gold as it aims to expand its presence in the global metals and mining market.

The regulatory approval, received from South Africa's Reserve Bank and Australia's Foreign Investment Review Board (FIRB), marks a key milestone in the transaction. Harmony Gold's subsidiary, Harmony Australia Pty Ltd, will acquire 100% of MAC Copper's issued share capital under a scheme of arrangement structured under Jersey law. The acquisition still requires shareholder approval at meetings scheduled for August 29, 2025, in Jersey, with voting eligibility based on the July 29 share register [1].

MAC Copper's main asset is the CSA mine in New South Wales, Australia, one of the country's deepest underground copper mines. The mine and facility were previously held by Glencore and were acquired by MAC for $1.1 billion in March 2022. The acquisition of MAC represents a strategic shift for Harmony Gold, which is South Africa's leading gold producer, as it diversifies its portfolio with critical minerals such as copper [3].

The approval of the deal by the South African Reserve Bank and FIRB signifies that all requisite regulatory approvals have been obtained. However, the transaction still requires approval from investors, satisfaction of certain restructuring conditions, and sanction by the court. Shareholders of MAC are expected to cast their votes at meetings scheduled for August 29 in Jersey and online [2].

MAC CEO Mick McMullen commented, "The receipt of regulatory approval from FIRB following the previously announced approval from SARB is another significant step towards implementation of the Transaction as all requisite regulatory approvals have now been obtained." He encouraged shareholders to vote well ahead of the August 29 meetings [2].

The acquisition is part of Harmony Gold's broader strategy to invest in metals and mining assets aligned with global electrification and decarbonization goals. The transaction expands Harmony's existing copper footprint in Australia, where it entered in 2022 with the Eva copper project in Queensland. Harmony expects to begin production at Eva by 2028, with CSA and Eva combined aiming to produce 100,000 tonnes of copper annually within five years [3].

References:
[1] https://finance.yahoo.com/news/mac-copper-matl-acquisition-gains-192353038.html
[2] https://www.stocktitan.net/news/MTAL/mac-copper-limited-announces-firb-approval-received-regulatory-qt7lal3r48ia.html
[3] https://www.mining.com/harmony-golds-mac-copper-takeover-gets-regulatory-nod/