Newmont Corporation → Newcrest Mining
completedNewmont entered a binding scheme implementation deed to acquire ASX/PNGX-listed gold and copper miner Newcrest Mining in an all-scrip deal (0.400 Newmont shares per Newcrest share plus a special dividend), creating the world's largest gold miner. The deal closed on 6 November 2023.
Newmont said the combination created an industry-leading portfolio with a multi-decade gold and copper production profile concentrated in favourable mining jurisdictions, adding Newcrest's Cadia and Lihir assets to its portfolio.
Newcrest's board recommended the deal after Newmont raised its offer twice, ultimately to a 30.4% premium including the special dividend, judging it superior to Newcrest continuing as a standalone company.
Newcrest shares jumped 10.4% to A$24.79 on the initial non-binding proposal in February 2023.
Goldman Sachs reacted positively to Newmont's revised ~A$17 billion bid, viewing the increased offer favourably for Newcrest holders.
Deal mechanics
BofA Securities, Centerview Partners, BMO Capital Markets and Lazard (financial); King & Wood Mallesons and White & Case (legal)
JPMorgan and Gresham Advisory Partners (financial); Herbert Smith Freehills (legal)
Scheme of arrangement — 0.400 Newmont shares per Newcrest share plus special dividend of up to US$1.10/share
FIRB, Hart-Scott-Rodino (US), Canadian Competition Bureau, and Newcrest/Newmont shareholder approvals