Big deal: Australia’s biggest gold miner in the sights of global giant

Australia’s biggest goldminer says it has received a tentative $24.3 billion takeover offer from the world’s largest one.

Feb 06, 2023, updated Feb 06, 2023
The world's largest gold miner has launched a takeover bid for Australia's biggest.

The world's largest gold miner has launched a takeover bid for Australia's biggest.

Newcrest on Monday confirmed it had been approached by New York Stock Exchange-listed Newmont Corp about an all-scrip takeover.

Newmont has floated a figure of Newcrest shareholders receiving 0.38 Newmont shares for each Newcrest one they own.

Based on Newmont’s last closing share price, Newcrest said that would be consideration of $A27.16 a share – a 21 per cent premium to its closing price on Friday.

Newcrest shares early on Monday were up 9.3 per cent to $24.53.

Newcrest said it had rejected an earlier, lower offer from Newmont and was considering this latest one.

It has engaged JP Morgan and Gresham Advisory Partners as financial advisors and Herbert Smith Freehills as its legal adviser.

If the takeover goes through, Newmont envisions its shares trading on the ASX via a Chess Depository Interest listing.

Valued at $20b, ASX20 component Newcrest operates the Cadia goldmine in Orange, NSW; the Telfler mine in Western Australia; along with two mines in Papua New Guinea and two mines in Canada.

Newmont has a market capitalisation of $A57b and owns goldmines in North and South America, Ghana and two in Australia: the Tanami mine in the Northern Territory and Boddington in WA, one of Australia’s biggest goldmines.

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