Gold Fields (JSE:GFI) is reportedly weighing up another offer to buy Northern Star Resources (ASX:NST) after its initial bid was turned down earlier this week.
According to Bloomberg, the South African gold producer is considering increasing the cash component of its proposal after Northern Star rejected a $38.7 billion offer on Monday.
However, deliberations remain at an early stage and there is no certainty Gold Fields will submit a revised proposal, Bloomberg says, citing people familiar with the matter.
Northern Star under investor pressure
The approach comes as Northern Star faces pressure from activist investor Elliott Investment Management, which has been pushing the Australian miner to pursue a sale.
Earlier this year, it was revealed that the US investment firm had built an estimated 4% stake in Northern Star worth more than $1 billion.
Northern Star Chairman Michael Chaney subsequently confirmed to shareholders that the company had received approaches from several potential buyers, but said it was not looking to sell at the time.
Potential gold giant
A combination with Gold Fields would create the world’s second-largest gold producer by output, with operations spanning Africa, Australia, and the Americas.
Both companies currently rank among the world’s 10 largest gold producers based on their respective production during the first half of 2026.
The combined company could produce around 4.1 million ounces of gold annually, with more than half of that output coming from a cluster of operations in Western Australia, according to Gold Fields.
Gold Fields also estimates a merger could unlock as much as US$5 billion ($7.16 billion) in potential synergies.
Write to Jackson Chen at Mining.com.au
Main Image: Gold Fields
