Newmont's proposed Newcrest acquisition could be a 'long, drawn-out affair': Investor - BNN Bloomberg

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Following Newmont Corp.’s offer to acquire Australia-based Newcrest Mining Ltd., one investor said the proposed deal now faces a number of headwinds.

John Ing, president and chief executive officer at Maison Placements Canada, said in an interview with BNN Bloomberg Monday that theFirstly, Ing said Australia is “not an easy jurisdiction to do a takeover.”

“And the other problem is that it's a premium bid, but there are some major shareholders of Newcrest…an eight per cent shareholder already that has said it's not such a great deal,” Ing said. Newmont confirmed the all-stock proposal Sunday in a, which would solidify the U.S. mining company’s position as the largest gold miner in the world.

Tanya Jakusconek, an analyst at the Bank of Nova Scotia, said in a note Monday that the proposal is now being considered by Newcrest’s board and follows a previous offer that was rejected. “While the proposal is non-binding, and may not be consummated, we see this offer as slightly accretive for NEM [Newmont], from a financial perspective,” Jakusconek said in the note.

“For NCM [Newcrest], shareholders would receive a premium and the opportunity to be part of a larger entity.”

 

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