Investing.com -- Pan American Silver Corp (NYSE:PAAS). is set to acquire MAG Silver Corp (TSX:MAG)., a move that has been viewed as credit positive by Moody’s Ratings. The acquisition is expected to offer Pan American Silver Corp. a more diversified portfolio and an additional source of cash generation, enabling the company to fund growth projects without incurring additional debt.
The acquisition, announced on May 13, 2025, will incorporate MAG Silver (NYSE:MAG)’s 44% stake in the Juanicipio silver mine into Pan American’s portfolio. This move will increase Pan American’s exposure to silver production.
Moody’s Ratings also anticipates that Pan American’s credit profile will benefit from improved credit metrics, given MAG Silver’s debt-free status. This acquisition is therefore seen as a strategic move to enhance Pan American’s financial strength and stability.
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