Newmont tables £15.7bn mega offer for rival Aussie gold miner Newcrest
US gold miner Newmont has ramped up its bid for Aussie rival Newcrest with a massive £15.7bn ($19.5bn) final offer.
The Denver-headquartered miner first approached Newcrest with a £13.7bn offer back in February, but it was rejected by Newcrest’s board.
The new mega bid has been labelled the “best and final” by Newmont, with the world’s largest gold miner is aiming to create a global powerhouse for the precious metal.
Newcrest confirmed the latest bid when approached by Morning Wire
A spokesperson said: “Newcrest advises that it has received a revised conditional and non-binding proposal from Newmont Corporation to acquire 100 per cent of the issued shares in Newcrest, by way of a scheme of arrangement. “
Alongside consolidating its market leading position, Newmont would also boost its exposure to valuable copper resources through the deal, which are becoming increasingly vital in the push to green energy and renewables.
Tom Palmer, president and chief executive of Newmont said in a statement: “This transaction would strengthen our position as the world’s leading gold company by joining two of the sector’s top senior gold producers and setting the new standard in safe, profitable and responsible mining.
“Together as the clear gold-mining leader, we would be well-positioned to generate strong, stable and lasting returns with best-in-class sustainability performance for decades to come.”
Newcrest has revealed it had given Newmont access to its books following the sweetened all-share bid, raising expectations a deal can be pushed through and backed by shareholders.
“I think this offer strikes a better balance. We are positively disposed to the Newcrest-Newmont merger and would intend to remain a shareholder of the combined entity were a transaction to proceed,” Simon Mahwinney, chief investment officer at Newcrest’s top shareholder Allan Gray Australia, told news agency Reuters.
He separately confirmed to the Financial Times he would back the deal if it was formally agreed unless a higher offer emerged from a rival.
However, there are questions about whether regulators could block the deal, which would mean four of Australia’s five largest gold mines would be owned by the US company.
The bid comes amid a wider push for consolidation in the global commodities sector following BHP’s buyout of smaller rival OZ Minerals and Glencore’s failed bid for Canada’s Teck Resources.