Now that the Federal Economic Competition Commission has approved the agreement, Pan American Silver’s acquisition of Tahoe Resources is a-go, reports Bnamericas. Pan American Silver will acquire all issued and outstanding shares in an operation that is expected to be completed on February 22, 2019.
“Pan American Silver views the acquisition of Tahoe as a logical and consistent step in advancing our vision to be the largest, low-cost primary producer of silver in the world,” states the company’s official website. With such an ambitious goal in mind, the so-called Tahoe Transaction aims to consolidate a portfolio with the largest silver reserve base, getting the company to a strong financial position and yielding better results for shareholders.
Headquartered in Canada, Pan American Silver started operations in 1994 and is now listed on NASDAQ and TSX. In its pursuit to become the largest silver producer in the world, the company is betting on an ever more diversified portfolio of six mines in Mexico, Peru, Bolivia and Argentina.
Mexico is a cornerstone for Pan American Silver’s strategy, representing close to 48 percent of its total yearly output. Working mainly in the state of Zacatecas, the company expanded La Colorada and Dolores mines in 2017 to ramp up production.
The company is no stranger to M&As. In 2010 it acquired Aquiline Resources and got its hands on one of the largest undeveloped silver deposits in the world: La Navidad, located in the Chubut province in Argentina. With the US$1.07 billion Tahoe Transaction, Pan American Silver is expected to double its resources. Tahoe Resources has five operating mines in Guatemala, Peru and Canada, which are countries previously not developed by Pan American Silver.