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"Global Mining Descisions in Your Palms"
“We believe a combination of Newmont and Newcrest presents a powerful value proposition to our respective shareholders, workforce and the communities in which we operate. The proposed transaction would join industry-leading portfolios of assets and projects to create long-term value across the combined global business, and we welcome the consideration of Newcrest’s Board of Directors.”
Tom Palmer,
President and CEO
Newmont.
Newmont Corporation has confirmed it has submitted a non-binding proposal to acquire 100% of the issued share capital of Newcrest Mining Limited (Newcrest) by way of a scheme of arrangement. The proposed transaction would combine two of the sector’s top senior gold producers, and set the standard for sustainable and responsible gold mining.
Newmont’s proposal to combine with Newcrest is on the basis of 0.380 Newmont shares per Newcrest share, which would result in the combined company being 30 percent owned by Newcrest and 70 percent owned by Newmont. This represents a compelling opportunity for the shareholders of both companies to share in the upside of putting together two complementary businesses.
Newmont’s proposal is subject to certain customary conditions, including due diligence to the satisfaction of both parties, entry into a scheme implementation agreement and a recommendation from the Newcrest Board of Directors that Newcrest shareholders vote in favor of the proposal.
“We believe a combination of Newmont and Newcrest presents a powerful value proposition to our respective shareholders, workforce and the communities in which we operate,” said Tom Palmer, President and CEO of Newmont. “The proposed transaction would join industry-leading portfolios of assets and projects to create long-term value across the combined global business, and we welcome the consideration of Newcrest’s Board of Directors.”
The Indicative Proposal is subject to a number of conditions, including granting of exclusivity to Newmont, due diligence, Newmont shareholder approval and various regulatory approvals, including FIRB and approval under the Hart-Scott-Rodino Act. The Indicative Proposal also contemplates the establishment of a Chess Depositary Interest listing on the ASX for new Newmont shares issued to Newcrest shareholders. The Newcrest Board, together with its financial and legal advisers, is considering the Indicative Proposal.
Biggest Producer of Gold Globally
Based in Colorado, Newmont is currently the world’s biggest gold producer by market value and ounces produced. It has operations across the globe in gold, copper, silver, zinc and lead, including two major Australian gold mines at Boddington in Western Australia and Tanami in the Northern Territory.
Newcrest is Australia’s largest gold miner with operations in New South Wales and Western Australia, an expanding footprint in North America and Papua New Guinea, and growth potential in copper which is integral to the global energy transition.
If successful, Newmont’s latest grab for Newcrest would be the largest merger and acquisition deal announced so far this year. It would also become the largest mining takeover and the third largest corporate buyout in Australian history.
For the 15th year in a row, Newmont Corporation joined the Dow Jones Sustainability™ World Index (DJSI World), representing the top 10% of the largest 2,500 companies in the S&P Global Broad Market Index. DJSI World membership is based on long-term economic factors, as well as leading environmental, social and governance (ESG) performance evaluated through the 2022 S&P Global Corporate Sustainability Assessment (CSA).
It will be interesting to know how Newcrest fits in the scheme of things as the company also has a strong brand and a great pipeline of operational and future profitable projects.