Newmont going for gold with £15.7bn bid for rival Newcrest
Newmont targets rival Newcrest with £15.7bn bid: World’s largest prospector looks set to tighten its grip on the market
The world’s largest prospector has increased its takeover bid for its main rival in a continued effort to consolidate its grip on the market.
Colorado-based Newmont has raised its bid for Australian group Newcrest from £13.7bn to £15.7bn, which was rejected in February.
Newmont founded Newcrest in the 1960s and is trying to bring the company back together after it split three decades ago.
Golden opportunity: Colorado-based Newmont has raised its bid for Australian group Newcrest from £13.7bn to £15.7bn, which was rejected in February
In the latest offer, which the US giant has said is its best and final offer, Newcrest investors would own 31 percent of the combined company.
Newmont has committed that if the acquisition succeeds, it will retain a listing on the Australian stock exchange.
It is conducting due diligence work, which is expected to be completed within the next four weeks.
A tie to Newcrest would increase Newmont’s access to copper reserves and increase its exposure to investment funds.
But such a large merger is likely to be scrutinized by regulators, particularly in Australia, where Newmont will control four of the five largest gold mines.