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- Newcrest Mining (NCM) extends the exclusivity period with Newmont Corporation, allowing more time to complete due diligence over its proposed US$19.5 billion (A$29.4 billion) takeover bid
- Newcrest reported the period had been extended by seven days, but reminded investors there was no certainty a binding offer would eventuate
- Newmont lobbed its “best and final price” on April 11 and shortly after, on April 14, entered an exclusivity deed
- If successful, the merger would create the world’s biggest gold miner by some margin
- Shares in NCM are down 2.13 per cent, trading at $28.28 at 11:05 am AEST
Newcrest Mining (NCM) has extended the exclusivity period for a proposed takeover by Newmont Corporation, allowing the US gold mining giant more time to complete due diligence.
The ASX 200-listed company reported an extension of seven days was granted, offering Newmont until May 18 to submit a binding offer.
On April 11, Newcrest announced it received a non-binding indicative proposal from Newmont, valuing the company at US$19.5 billion (A$29.4 billion). The companies entered into an exclusivity deed on April 14.
Under the latest takeover offer, Newcrest shareholders would receive 0.4 Newmont shares for each share held, valued at $32.87 apiece.
Newmont said its latest offer was the “best and final price”, valued 16 per cent higher than its initial proposal which was rejected by Newcrest.
A successful merger would see the two companies become the world’s biggest gold miner by some margin, with operations in North America, South America, Africa, Australia and Papua New Guinea.
Funnily enough, Newmont founded Newcrest in the 1960s, but demerged around 30 years ago.
The deal would mark one of the biggest mergers ever involving an Australian company and rank amongst the biggest deals globally in 2023.
However, Newcrest has highlighted that despite the extension and floated revised proposal, there was no certainty a binding offer would eventuate.
Shares in NCM were down 2.13 per cent, trading at $28.28 at 11:05 am AEST.
