NCMGF - Newcrest board backs Newmont takeover bid - Bloomberg

2023-05-04 00:12:00 ET

Newcrest Mining's ( OTCPK:NCMGF ) ( OTCPK:NCMGY ) board is prepared to recommend a takeover offer from Newmont ( NYSE: NEM ) to its shareholders, interim CEO Sherry Duhe said early Thursday, according to Bloomberg.

Newmont ( NEM ) made a non-binding offer to buy Newcrest ( OTCPK:NCMGF ) ( OTCPK:NCMGY ) last month in a deal that valued the Australian company at A$29.4B (~US$19.5B).

Newcrest ( OTCPK:NCMGF ) ( OTCPK:NCMGY ) had been conducting its own due diligence on Newmont ( NEM ), and Duhe said the board would be prepared to recommend the takeover if Newmont made its offer binding, Bloomberg reported .

If successful, the deal would create by far the world's biggest gold miner, with mines in North and South America, Africa, Australia and Papua New Guinea.

A deal also would increase Newmont's ( NEM ) exposure to copper, as analysts are predicting major shortages of the metal expected to play a vital role in the clean energy transition.

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