Newmont ( NYSE: NEM ) made a non-binding offer to acquire Newcrest Mining ( OTCPK:NCMGF ) ( OTCPK:NCMGY ), Australia's top gold miner said Sunday.
Under the proposed deal terms, Newcrest ( OTCPK:NCMGF ) ( OTCPK:NCMGY ) shareholders would receive 0.38 Newmont ( NEM ) shares for each Newcrest share held, which would value Newcrest at ~$17B .
Newcrest ( OTCPK:NCMGF ) ( OTCPK:NCMGY ) said its board is considering the proposal, which is conditional on Newmont ( NEM ) being granted exclusive due diligence.
Newmont ( NEM ) made an earlier bid offering an exchange ratio of 0.363, which Newcrest's ( OTCPK:NCMGF ) ( OTCPK:NCMGY ) board rejected.
Mining stocks such as Newmont ( NEM ) "offer a potential recession hedge as a strong 'Fed pivot' could send gold soaring to a new all-time high," Harrison Schwartz writes in an analysis newly published on Seeking Alpha .
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Australia's Newcrest Mining gets takeover bid from Newmont