Strategic Buyout Sparks Investor Frenzy
MAC Copper Limited (ASX: MAC) experienced a stunning rally today, with its share price jumping 19.96% to $18.605 by 1:48 PM AEST. The surge follows the company’s announcement late yesterday that it has entered into a binding Scheme Implementation Deed with Harmony Gold Mining Company, setting the stage for a full acquisition by Harmony’s Australian subsidiary.
Trading resumed today after MAC had been placed in a trading halt at 9:15 AM on 27 May, pending the announcement, which was released at 4:37 PM AEST. The news has electrified the market, resulting in a heavy spike in volume, with over 363,000 shares traded, compared to the four-week average of just 88,800.
MAC Copper Limited Soars Nearly 20% [Market Index]
The Deal Driving the Rally
The proposed deal will see Harmony Gold (Australia) Pty Ltd acquire 100% of MAC Copper via a Jersey law scheme of arrangement. Under the terms of the agreement, MAC shareholders will receive US$12.25 per share, equivalent to approximately A$18.93 based on the prevailing exchange rate.
This represents a substantial 22.1% premium over MAC’s previous closing price of A$15.51 and a 32.8% premium to the 30-day VWAP of A$14.26. The fully diluted equity valuation of the deal sits at around A$1.6 billion, or US$1.03 billion.
Harmony Gold (Australia) Pty Ltd acquire 100% of MAC Copper via a Jersey law scheme of arrangement [Credit: MAC Copper and Harmony Gold]
Importantly, the MAC Board has unanimously recommended the scheme and confirmed that all directors will vote in favor of the deal, barring a superior proposal. Key shareholders representing over 20% of issued capital, including Fourth Sail, Osisko, Sprott, Victor Smorgon, and Bluescape, have also committed their support.
Also Read: Harmony’s $1.6 Billion MAC Acquisition Signals Bold Shift in Australian Copper Landscape
Investor Reaction and Market Impact
The market’s response was immediate and enthusiastic. MAC’s share price opened at $18.80, surged to a high of $18.845, and is currently trading just below that mark. With a turnover exceeding $6.76 million already recorded today, investor confidence appears firmly behind the acquisition.
Over the past week, MAC shares have climbed 21.05%, and over the past month, they are up 27.87%. Despite this recent strength, the stock remains down 10.29% year-on-year, highlighting the dramatic turnaround sentiment triggered by the Harmony deal.
Why Harmony Wants MAC Copper
Harmony Gold, a major South African gold miner listed on both the JSE and NYSE, is pursuing MAC as part of a strategic expansion into copper—an increasingly vital metal in the electrification and green energy transition. Through this acquisition, Harmony secures MAC’s flagship CSA Copper Mine, a high-grade underground operation located near Cobar, New South Wales.
The deal also complements Harmony’s development of the Eva Copper Project in Queensland, creating a more diversified and regionally focused copper business in Australia.
MAC CEO Mick McMullen described the transaction as “a compelling opportunity for shareholders to realise an attractive cash value” while also allowing for long-term project stewardship under a respected global operator. He also emphasized the benefits to the Cobar community and the CSA mine workforce, highlighting Harmony’s experience and commitment to sustainable mining practices.
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Transaction Certainty and Timeline
The scheme is subject to standard conditions, including:
- Shareholder approval at a Scheme Meeting expected in Q4 2025
- Approval from the Foreign Investment Review Board (FIRB) in Australia
- Clearance from the South African Reserve Bank
- Sanctioning by the Royal Court of Jersey
Importantly, the deal is not subject to financing or due diligence conditions, a fact that has likely contributed to the strong investor response. Harmony plans to fund the acquisition through existing cash reserves and committed debt financing.
A Scheme circular outlining the full details of the transaction is expected to be distributed to MAC shareholders by September 2025, with implementation targeted soon after shareholder and regulatory approvals are secured.
What’s Next for Shareholders?
For shareholders, the road ahead includes reviewing the forthcoming Scheme Booklet and voting at the Scheme Meeting later this year. Assuming all conditions are met, holders of MAC shares as of the record date will receive the cash offer of A$18.93 per share.
While the board has expressed strong confidence in the deal, shareholders should be aware that the agreement includes standard “no-shop” and “no-talk” exclusivity clauses, along with break fees should either party withdraw under specific conditions.
Conclusion
Today’s nearly 20% surge in MAC Copper Limited’s share price is a direct result of the company’s strategic acquisition announcement. Backed by a substantial premium, a cash offer, and strong board and shareholder support, the transaction represents a rare moment of clarity and confidence in the mining sector.
With copper’s importance in the global clean energy transition and Harmony’s ambition to establish a copper footprint in Australia, the deal appears not only financially compelling for shareholders but also operationally strategic for both companies.
The MAC-Harmony deal is already shaping up to be one of the most notable transactions in Australia’s mining sector for 2025. Investors and analysts alike will be watching closely as it moves through regulatory approvals and toward what could be a transformational milestone for both companies.
