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VANCOUVER - Mexican regulators have approved Pan American Silver Corp.’s (NYSE:PAAS) (TSX:PAAS) acquisition of MAG Silver Corp. (NYSE American:MAG) (TSX:MAG), clearing the final regulatory hurdle for the transaction. Pan American Silver, with a market capitalization of $11.8 billion and a perfect Piotroski Score of 9 according to InvestingPro, has demonstrated strong financial health with its shares up over 63% year-to-date.
The Mexican Federal Economic Competition Commission (COFECE) has granted approval for the previously announced deal, according to a statement released Monday by both companies. All required regulatory, shareholder and court approvals have now been secured, with the transaction expected to close on or about September 4, 2025.
Under the terms of the arrangement, MAG shareholders can elect to receive either $20.54 in cash for each MAG share held, or the default option of $0.0001 in cash plus 0.755 of a Pan American share per MAG share. The election deadline for registered MAG shareholders is Wednesday at 2:00 p.m. Vancouver time.
The aggregate consideration will consist of $500 million in cash with the remainder paid in Pan American shares, subject to proration.
The acquisition will strengthen Pan American’s portfolio, which currently includes mining operations across seven countries in the Americas. MAG’s primary asset is its 44% joint venture interest in the Juanicipio Mine in Mexico, operated by Fresnillo Plc, which holds the remaining 56% stake. The mine processes 4,000 tonnes of ore per day.
MAG also holds exploration projects including the Deer Trail Project in Utah and the Larder Project in Canada’s Abitibi region.
Pan American Silver, headquartered in Vancouver, has been operating in the Americas for over three decades and describes itself as a leading producer of silver and gold in the region.
In other recent news, Pan American Silver Corp reported strong financial results for the second quarter of 2025, exceeding analyst expectations. The company announced earnings per share of $0.43, surpassing the forecast of $0.40. Additionally, Pan American Silver reported record revenue of $811.9 million, which was higher than the anticipated $794.94 million. In another significant development, Pan American Silver has received approval from Mexico’s Federal Economic Competition Commission for its acquisition of MAG Silver Corp. This regulatory approval was the final requirement needed to proceed with the transaction. The completion of the acquisition is expected on September 4, 2025. These recent developments highlight key financial and strategic moves by Pan American Silver.
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