US gold miner Newmont raises offer for Australian Newcrest to $19.5 billion

The world’s largest gold producer American corporation Newmont raises the offer amount for 100% of the shares of the Australian mining company Newcrest Mining to 29.4 billion Australian dollars ($19.5 billion).

In February, the Americans were ready pay for the Australian company $16.9 billion – 21% more than the shares were worth at the close of trading on the eve of the offer. However, not all Newcrest shareholders were satisfied with this proposal. Now, as reported Reutersconditions may change.

“I think this proposal is more balanced in value,” said the agency of the chief investment officer of Allan Gray Australia, the largest shareholder of Newcrest. “We are positive about the prospects for the merger and would like to remain part of the shareholders of the combined company, if one is created.”

Under the terms of the offer, the merger will take place at a ratio of shares of Newmont and Newcrest as 0.38 to 1. As a result of the merger, the newly formed company will be 70% owned by Newmont and 30% by Newcrest. If the deal goes through, Newmont’s gold production would double the current production of its closest competitor, Barrick Gold.

Evgeniy Khvostik