May 11 (Reuters) - Canadian miner Pan American Silver ( PAAS )

will acquire MAG Silver Corp ( MAG ) in a transaction

which values the silver mining company at about $2.1 billion,

the companies said on Sunday.

The deal will give Pan American Silver ( PAAS ) access to a 44%

interest that MAG has in the tier-one Juanicipio silver mine in

Mexico, which is operated by Fresnillo, which owns the remaining

56%.

The deal, unanimously approved by the boards of directors of

both Pan American and MAG, is expected to close in the second

half of 2025, the companies said in a statement.

As of the market close on Friday, Pan American Silver ( PAAS ), a

leading silver and gold mining company has a market

capitalization of about $9.9 billion, while MAG Silver ( MAG ) has a

market capitalization of $1.7 billion, as per LSEG data.

Under the deal, MAG shareholders will receive $20.54 per

share, consisting of $500 million in total cash and 0.755 Pan

American shares per MAG share.