Newmont, NYSE: NEM, TSX: NGT, the world’s largest gold producer buying Newcrest, NCM, NCMGY, an Australia based gold miner with assets in Australia and Canada. Newmont has a history of successfully acquiring other gold miners, a few years ago Newmont successfully acquired Canada based Goldcorp.
Newcrest earlier rejected a $17 Billion offer from Newmont. Newmont sweetened the deal and made some concessions. Newcrest’s board tentatively agreed to the freshly submitted $20 Billion bid.
The Best and Final Proposal
Under the terms of the Best and Final Proposal, Newcrest shareholders would own approximately 31 percent of the combined company. Newmont intends to apply for a foreign exempt listing on the Australian Securities Exchange (ASX) and establish Chess Depositary Interests on ASX in respect to Newmont shares issued to Newcrest shareholders under the Best and Final Proposal.
Newmont’s decision to pay a premium of almost $3 billion is driven not only by the rising gold price but also strategically important Copper. The demand for copper is expected to grow significantly over the next decade as the world prepares for a sustainable zero carbon economy.
From The Editor of Daily Stock Deals:
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