Newmont Seeks to Acquire Newcrest

By John McPhaul, The Chicago Times

February 6, 2023

DENVER – Newmont Corporation announced Sunday that has submitted a non-binding proposal to acquire 100% of the issued share capital of Newcrest Mining Limited by way of a scheme of arrangement.  Newmont proposes to combine two of the sector’s top senior gold producers.

According to a press release, 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.

However, Newmont’s proposal will be 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.”

Newmont and its Board of Directors advises shareholders need not take any action at this time as there can be no certainty that a transaction will be completed.  Newmont has engaged Banl of America Securities, Centerview Partners LLC, and Lazard as its financial advisers, and King & Wood Mallesons and White & Case LLP as its legal advisers.