North American Palladium (NAP) has entered an agreement where Impala Platinum Holdings Ltd. (Implats) will acquire all of the company’s common shares for a total cash consideration of approximately C$1 billion ($751 million). The transaction has been unanimously approved by both the board of directors of NAP and Implats.

“This transaction delivers attractive value for our shareholders and reflects five years of hard work we have devoted to realize the potential of our assets,” said Jim Gallagher, president and CEO of NAP. “We have successfully established Lac des Iles Mine as one of Canada’s largest, lowest-cost and safest underground mines, producing a metal that contributes to a cleaner global environment.”

Implats said this would allow them to benefit from greater access to technical, operational and financial resources to pursue production, development and exploration objectives in Canada.

The transaction will require approval by at least two-thirds of the votes cast at a special meeting of NAP shareholders. NAP can accept a superior proposal within a 30-day period. Implats has the right to match any superior proposal within five business days.

In addition to shareholder approval, the transaction is subject to the receipt of certain regulatory, court and stock exchange approvals.