History
2023: $17 billion Newmont ownership move
On February 5, 2023, the world's largest gold miner, the American the company, Newmont made an offer to buy the Australian rival Newcrest Mining. The deal will amount to approximately $17 billion, making it one of the largest in the gold mining industry.
The merger proposal is based on the calculation of 0.38 shares of Newmont per share of Newcrest, as a result of which the combined company will be 30% owned by Newcrest and 70% owned by Newmont. If the deal goes through, Newmont will be able to produce almost twice as much gold as its rival Barrick Gold.
We believe the combination of Newmont and Newcrest represents a solid value proposition for our shareholders, employees and the communities in which we operate. The proposed deal would combine industry-leading assets and projects to effectively grow the business over the long term, said Tom Palmer, Newmont's president and CEO. |
Newcrest, which was spun off from Newmont in the 1990s, said it was considering the proposal. Newcrest's operations include Cadia's first-class asset in Australia, its expanding presence in North America and Papua New Guinea, and its copper mining growth potential, which is highly valued in the global energy market.
As part of the planned purchase, Newmont hired BofA Securities, Centerview Partners LLC and Lazard as financial advisers, as well as King & Wood Mallesons and White & Case LLP as legal advisers. It is emphasized that there is no certainty that any transaction will occur on the proposed terms, at any particular period of time, or at all. Risks include fluctuations in the stock price of companies and other uncertainties.[1]