Newcrest Mining has entered into a binding all-scrip takeover pact with US-based Newmont Corp, concluding months of dealmaking that first publicly surfaced in February.
Assuming Newcrest shareholders approve the deal, each would receive 0.4 Newmont shares for each Newcrest share they currently hold, giving them a total ownership of 31 per cent of the newly merged company.
Newcrest will also pay a franked special dividend of up to $1.10 per share when the scheme is implemented, which is expected by the end of the year.
"This transaction will combine two of the world's leading gold producers, bringing forward significant value to Newcrest shareholders through the recognition of our outstanding growth pipeline," Newcrest chairman Peter Tomsett said on Monday.
Headquartered in Melbourne, Newcrest is an ASX20 company that operates the Cadia goldmine in Orange, NSW, the Telfer mine in Western Australia, two mines in Papua New Guinea and two mines in Canada.
Denver-based Newmont owns goldmines in North and South America, Ghana and two in Australia - the Tanami mine in the Northern Territory and Boddington in WA, which is one of Australia's biggest goldmines.
"In addition to the ongoing benefits of merging these premier portfolios, the combined group will set a new benchmark in gold production while benefiting from a material and growing exposure to copper and a market-leading position in safety and sustainability," Mr Tomsett said.
Newmont shares currently trade on the New York Stock Exchange and will also be listed on the ASX via a Chess Depository Interest listing once the deal goes through.Â
The takeover is subject to approval by the Foreign Investment Review Board and other regulatory requirements.
At 11.15am AEST, Newcrest shares were up 0.9 per cent to $28.50.
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