Newmont Takeovers Newcrest In A Largest-Ever Gold Industry Deal

Newmont Corp NEM inked a deal to fully acquire Newcrest Mining Limited NCMGY through an Australian court-approved Scheme of Arrangement unanimously recommended by Newcrest Mining's Board.
The offer values Newcrest mining at around $19 billion (A$28.8 billion) and is the gold sector's biggest-ever transaction, Bloomberg reported.
The combined company will be 31% owned by Newcrest and 69% by Newmont.
Following a proposal rejection by Newcrest, Newmont raised the bid and submitted a final revised takeover offer last month.
As per the deal, Newcrest's shareholders will receive 0.400 Newmont shares for each Newcrest share and get a special dividend per share of up to $1.10 from Newcrest, representing a 30.4% premium.
With the inclusion of Newcrest's robust portfolio of long-life, low-cost gold and copper assets, Newmont becomes the global leader in gold mining, with 10 Tier 1 operations spread across several locations such as Australia, Papua New Guinea and Canada.
The agreement will also boost Newmont's annual copper production, adding about 50 billion pounds of copper reserves and resources to its portfolio.
Upon transaction closure in Q4 2023, Newmont expects to garner annual pre-tax synergies of $500 million within the first 24 months of the takeover.
Also, it anticipates $2 billion in incremental cash flow in the first two years through portfolio optimization, leading to shareholders' value enhancement.
Last month, Newmont disclosed the expectation of annual dividend payments for 2023 in the $1.40 - $1.80 per share range while reporting Q1 2023 results.
Price Action: Newmont shares closed higher by 0.13% at $45.94 on Friday.

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