Newmont Seals $19 Billion Newcrest Takeover in Top Gold Deal – by Harry Brumpton and Dinesh Nair (Yahoo Finance/Bloomberg – May 15, 2023)

Newcrest Mining Ltd. has agreed to a takeover deal with Newmont Corp. worth about A$28.8 billion ($19.2 billion) to create the world’s biggest gold producer.

Newcrest shareholders will get 0.4 shares in Newmont for every Newcrest share they own, giving them 31% ownership of the combined group, the Melbourne-based company said Monday, confirming a Bloomberg News report Sunday. The deal gives Newcrest an implied enterprise value of A$28.8 billion, which includes net debt.

Newcrest will also pay a franked special pre-completion dividend of up to $1.10 per share. Newcrest had earlier agreed to extend Newmont’s due-diligence rights to May 18 after an earlier deadline lapsed, it said Thursday.

“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,” Newcrest’s chairman, Peter Tomsett, said in the statement.

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