The biggest ever gold industry takeover worth A$28.8B is currently in motion between Newcrest Mining (ASX: NCM) and Newmont Corporation (TSX: NGT).
Newmont announced that following the completion of due diligence, it has entered into a binding scheme implementation deed under which the company will acquire 100% of the issued share capital in Newcrest, by way of an Australian court-approved scheme of arrangement.
The board of Newcrest are supporting the deal, which if successful, would constitute one of the largest buyouts worldwide so far this year.
“The combination of Newmont and Newcrest represents an exceptional value proposition for shareholders and other stakeholders. It creates an industry-leading portfolio with a multi-decade gold and copper production profile in the world’s most favourable mining jurisdictions,” said Tom Palmer, president and CEO of Newmont.
“Following a robust due diligence process, we have identified several opportunities to unlock substantial value and will apply our experience and expertise to Newcrest’s complementary and exceptional portfolio of long-life, low-cost gold and copper assets.”
Should the transaction go ahead, Newmont Corp, would become the largest gold and copper producer by market capitalization in the US, and would increase its already extensive portfolio to include 96Moz of gold reserves declared by Newmont and 52Moz declared by Newcrest, along with 111M and 68Moz of gold resources, respectively.
Newcrest’s chairman, Peter Tomsett, said: “This transaction will combine two of the world’s leading gold producers, bringing forward significant value to Newcrest shareholders through the recognition of our outstanding growth pipeline. In addition to the ongoing benefits of merging these premier portfolios, the combined group will set a new benchmark in gold production, while benefitting from a material and growing exposure to copper and a market leading position in safety and sustainability.”
