Genesis Minerals, Vault Minerals agree to $12.6B merger

• Genesis Minerals and Vault Minerals have agreed to a merger via a scheme of arrangement.
• The deal creates a combined Australian gold company valued at approximately $12.6 billion.
• The transaction aims to capture an estimated $2 billion in operational and corporate synergies.

Genesis Minerals (ASX:GMD) has executed an agreement to merge with Vault Minerals (ASX:VAU) in a transaction creating a combined gold company valued at approximately $12.6 billion.

The agreement follows a determination by the board of Vault Minerals that the proposal represented a superior outcome compared to a previous transaction proposal with Regis Resources.

Under the agreed terms, Vault shareholders will receive 0.7629 new Genesis shares plus $5.6 billion.

The companies stated that the merger is expected to generate approximately $2 billion in estimated post-tax synergies due to the proximity of their respective operations at Leonora and Bardoc-Mount Monger.

Following the announcement, the Genesis Minerals share price was unchanged at $6.29.

The combined business will establish a joint leadership team consisting of four directors nominated by Genesis and three directors nominated by Vault.

Upon implementation of the transaction, Genesis shareholders will own approximately 59.8% of the merged entity while Vault shareholders will hold the remaining 40.2%.