Pan American Silver to acquire MAG Silver after Mexican approval

VANCOUVER - Pan American Silver Corp. (NYSE:PAAS) (TSX:PAAS), a $11.8 billion market cap precious metals producer with a perfect Piotroski Score of 9 according to InvestingPro, and MAG Silver Corp. (NYSE American:MAG) (TSX:MAG) announced Monday that Mexico’s Federal Economic Competition Commission (COFECE) has approved their previously announced acquisition deal.

The regulatory approval marks the final requirement for the transaction, with all necessary regulatory, shareholder and court approvals now secured. The arrangement is expected to be completed on September 4, 2025, according to a company press release. The deal comes as Pan American demonstrates strong momentum, with a 63% year-to-date return and trading near its 52-week high of $32.82.

Under the terms of the deal, MAG Silver 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 total consideration will consist of $500 million in cash with the remainder paid in Pan American shares.

Registered MAG shareholders must indicate their election preference by August 27, 2025, at 2:00 p.m. Vancouver time.

Pan American Silver operates mines across the Americas, including Canada, Mexico, Peru, Brazil, Bolivia, Chile, and Argentina. The company also owns the currently non-operating Escobal mine in Guatemala.

MAG Silver holds a 44% joint venture interest in the Juanicipio Mine in Mexico, which is operated by Fresnillo (56%). The mine is located in the Fresnillo Silver Trend, described as Mexico’s premier silver mining camp. MAG also has exploration projects in Utah and Canada’s Abitibi region.

The acquisition will expand Pan American’s portfolio of silver assets in the Americas, reinforcing its position in the precious metals sector. With revenue growth of 21% in the last twelve months and an "GREAT" financial health rating from InvestingPro, which offers comprehensive analysis and 13 additional ProTips for PAAS, the company appears well-positioned for this strategic expansion. Discover detailed valuation metrics and growth potential in the Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Pan American Silver Corp reported impressive financial results for the second quarter of 2025, surpassing analyst expectations. The company achieved earnings per share of $0.43, exceeding the projected $0.40. Additionally, Pan American Silver recorded a revenue of $811.9 million, which was above the anticipated $794.94 million. These developments highlight the company’s strong performance in the recent quarter. Following the earnings announcement, analysts from various firms have been closely monitoring the company’s progress. Investors are keen to see how Pan American Silver continues to perform in the upcoming quarters. These recent developments are crucial for stakeholders interested in the company’s financial health and future prospects.

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