- Newmont Corp NEM signed a full takeover deal Newcrest Mining Limited NCMGY by a Scheme of Arrangement approved by the Australian Court unanimously Recommended by the Board of Newcrest Mining.
- The offering values Newcrest mining at around US$19 billion (AU$28.8 billion) and is the largest transaction in the gold sector of all time. Bloomberg reported.
- The combined company will be 31% owned by Newcrest and 69% owned by Newmont.
- After Newcrest rejected the proposal, Newmont upped the bid and submitted a final bid revised takeover offer last month.
- Under the terms of the agreement, Newcrest shareholders will receive 0.400 Newmont shares for each Newcrest share and a special dividend of up to $1.10 per Newcrest share, a premium of 30.4%.
- By incorporating Newcrest’s robust portfolio of long life, low cost gold and copper assets, Newmont will become the world leader in gold mining with 10 Tier 1 operations in multiple locations including Australia, Papua New Guinea and Canada.
- The agreement will also increase Newmont’s annual copper production and add approximately 50 billion pounds of copper reserves and resources to the Company’s portfolio.
- Upon closing of the transaction in Q4 2023, Newmont expects to realize $500 million in annual pre-tax synergies within the first 24 months of the acquisition.
- Additionally, in the first two years, an additional $2 billion in cash flow is expected from portfolio optimization, which will translate into shareholder value.
- Last month, Newmont announced that it expects annual dividend payments in the range of $1.40 to $1.80 per share for 2023 Publication of the results for the first quarter of 2023.
- price action: Newmont shares closed up 0.13% at $45.94 on Friday.
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