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Wednesday, November 29, 2023

Newmont Offers $19.5 Billion In Latest Bid For Australia’s Newcrest

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Newmont Corporation, the world’s largest gold miner, has raised its bid for Australia’s Newcrest Mining to $19.5 billion, in an attempt to acquire one of the country’s leading gold producers. The offer comes after Newmont’s initial bid of $17.4 billion was rejected by Newcrest’s board last month.

Newmont’s revised offer, which values Newcrest at AUD 28 per share, is a 10% increase from its previous bid of AUD 25.50 per share. The new offer comprises a mix of cash and stock, with Newmont offering 60% in cash and the remainder in its own shares.

In a statement, Newmont’s CEO, Tom Palmer, said that the company remains committed to the acquisition and sees significant value in combining with Newcrest. “We believe that our revised proposal offers compelling value to Newcrest shareholders and provides them with the opportunity to participate in the upside potential of a larger, more diversified company,” he said.

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The proposed merger would create the world’s largest gold producer, with a market value of over $80 billion. Newcrest is currently the third-largest gold miner in the world, behind Newmont and Barrick Gold, and has significant operations in Australia, Papua New Guinea, and Canada.

Newcrest’s board has yet to respond to Newmont’s latest offer. The company has previously stated that it sees itself as a strong independent company with a solid growth outlook, but it has not ruled out the possibility of a merger.

The proposed merger has faced some opposition from Australian politicians and mining industry groups, who have raised concerns about the concentration of power in the industry. However, both Newmont and Newcrest have emphasized the benefits of the merger, including increased operational efficiencies, cost savings, and the ability to leverage each other’s expertise and assets.

If the merger goes ahead, it would be one of the largest mining deals in history and would significantly reshape the global gold industry. The final decision will ultimately rest with Newcrest’s shareholders, who will vote on the proposed merger at a later date.

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