By Le Figaro with AFP
This operation will create a new world giant of gold production.
Australian mining company Newcrest announced on Monday that it has agreed to be taken over by US rival Newmont for US$19 billion, which will create a new global gold mining giant. By acquiring Newcrest, the American mining group is expanding its vast gold and copper mining ets, giving it a global presence from North and South America to Africa, Australia and Papua -New Guinea.
Shareholders of Melbourne-headquartered Newcrest will receive 0.4 shares of the US company for every share they currently hold, or a total of 31% of the merged group, the Australian company said. According to Newcrest, the value of the transaction is 28.8 billion Australian dollars, or 19 billion US dollars. “The new entity will set a new standard in gold production while benefiting from a large and growing exposure to copper and a market-leading position in safety and sustainability.said Peter Tomsett, chairman of Newcrest, in a statement.
Newcrest advocated the takeover offer “unanimously“, he added, three months after the rejection of a previous offer of 17 billion US dollars by its board of directors, on the grounds that it did not bring a “sufficient valueto shareholders. Newmont Managing Director Tom Palmer said the combined group was creating an industry-leading product line, with a “multi-decade outlook for gold and copper productionin the most lucrative mining areas of the world. “We have identified a number of opportunities to unlock substantial value and will bring our experience and expertise to Newcrest’s complementary and exceptional product range of low-cost gold and copper ets and long duration“, he said in a statement.
Denver-based Newmont said it expects synergies in the order of US$500 million per year. “This agreement also increases Newmont’s annual production of copper – a vital metal for the new energy economy – and adds nearly 50 billion pounds (22.7 million tonnes) of Newcrest’s copper reserves and resources to our portfolio of robust and balanced productssaid Tom Palmer. Newcrest shares were up 1.1% at 28.56 Australian dollars on Monday on the Australian Securities Exchange (ASX).