- About 11,000 billion FCFA
- Newmont becomes a global giant in gold production
- Newcrest had rejected a previous offer of 17 billion dollars
Australian mining company Newcrest has announced that it has agreed to be acquired by its US rival Newmont for 19 billion USD on Monday 15 May 2023. The takeover will create a new global giant in gold production.
Melbourne-based Newcrest shareholders will receive 0.4 shares in the US company for each share they currently hold, for a total of 31% of the merged group, the Australian company said, according to BFM Business. By acquiring Newcrest, the US mining group expands its extensive gold and copper mining assets, giving it a global presence from North and South America to Africa, Australia and Papua New Guinea.
“This is a great opportunity for Newmont to acquire some very good assets at what I consider to be an attractive price,” said the financial analyst specialising in the mining sector at the financial services company Barrenjoey Daniel Morgan.
Newmont chief executive Tom Palmer said the merged group was creating an industry-leading product range with a “multi-decade perspective of gold and copper production” in the world’s most lucrative mining areas.
Newcrest recommended the takeover bid “unanimously”, he added. As a reminder, 3 months ago, Newcrest’s board of directors had rejected a previous offer of 17 billion USD, on the grounds that it did not provide sufficient value to shareholders.
“The new entity will set a new standard in gold production while benefiting from significant and growing exposure to copper and a market-leading position in safety and sustainability,” said Peter Tomsett, president of Newcrest, in a statement.
As a reminder, Newmont Mining Corporation is an American company and part of a conglomerate based in Denvers, Colorado. It is one of the world’s largest gold producing companies.
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