Newmont offers to buy Australia's biggest miner amid gold merger spree

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Newmont Corp., the world\u0027s largest gold miner by output, has offered to buy Newcrest Mining Ltd. for US$17 billion. Read more

said in a press releaseThe company also said this was Newmont’s second offer that followed a bid of 0.363 Newmont shares for each Newcrest share, which Newcrest rejected.

Newmont’s bid to get even bigger extends a series of consolidations in the gold sector in recent years. Late last year, Yamana Gold Inc. agreed to sell itself to two Canadian rivals, Agnico Eagle Mines Ltd. and Pan American Silver Corp., for about US$4.8 billion.Article contentthat he expects a wave of gold mergers as executives and investors seek to maintain margins amid higher production costs and declining grades of the metal.

Aside from the sale of Yamana, which has properties and mines in Canada, Brazil, Chile and Argentina, there have been at least eight notable combinations since 2018, whenAdvertisement 5Recommended from EditorialBank of Nova Scotia analyst Tanya Jakusconek in a note to clients said that if the offer goes through, it would create the world’s largest gold miner with the market cap of the combined companies expected to reach about US$57 billion, producing about 8 to 8.

Bank of Montreal analyst Jackie Przybylowski in a note to clients on Feb. 5 said Newmont’s bid would “surprise” the market but that it should be viewed as a positive.Article content

 

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Newmont offers to buy Australia's biggest miner amid gold merger spreeNewmont Corp., the world\u0027s largest gold miner by output, has offered to buy Newcrest Mining Ltd. for US$17 billion. Read more
Source: nationalpost - 🏆 10. / 80 Read more »