The world’s largest gold producer, Newmont, takes over its competitor Newcrest. The deal is a billion-dollar deal. The US group thus secures the top position in the industry.
The gold producer Newmont from the USA can take over its Australian competitor Newcrest. The company announced that Newcrest has accepted the $19 billion takeover bid.
The world’s largest gold producer is thus further expanding its leading position. The company then mines gold and copper in North and South America, South Africa, Australia and Papua New Guinea.
First offer rejected
Three months ago, Newcrest rejected an initial offer of $17 billion on the grounds that the offer was too low. The shareholders still have to vote on the new offer. Voting is expected in September or October, with the acquisition expected to be complete by the end of the year.
Melbourne based Newcrest shareholders will now receive 0.4 Newmont shares per share. You would then hold around a third of the US group, as Newcrest further announced.
Savings of 500 million euros
Gold giant Newmont expects the acquisition to save $500 million a year. Copper production will increase significantly. The metal is “essential” to the renewable energy-based economy, Newmont said.