Swapping aluminum for copper will maintain China’s resources, group says
China depends on overseas imports for 60% of its aluminum resources as opposed to 70% of its copper resources.
Newcrest Mining (ASX, TSX: NCM) has extended the exclusivity period for Newmont (NYSE: NEM, TSX: NGT) to complete its due diligence and submit a binding takeover offer under the same terms as previously announced.
On April 11, the companies entered into an exclusivity deed after a revised non-binding proposal submitted by Newmont valued at $19.5 billion. This represents Newmont’s final offer after the original offer of $16.9 billion was turned down in February.
US-based Newmont had until May 11, 2023, to conduct confirmatory due diligence. During that period, Newcrest must abide to certain restrictions such as ‘no shop’ and ‘no talk’ to grant Newmont exclusivity.
This exclusivity period has now been extended to May 18, as Newmont has substantially completed due diligence, and will be given another week to make its offer binding.
Newcrest CEO Sherry Duhe said last week that the board is prepared to recommend a takeover offer from Newmont, subject to successful due diligence during this period. The Australian miner had given Newmont access to its books following its sweetened bid last month.
A successful bid would see the two companies merge into by far the world’s biggest gold miner, with sites in North and South America, Africa, Australia and Papua New Guinea.
Shares of Newcrest Mining were down 1.9% by 12:40 p.m. EDT. The company has a market capitalization of A$25.8 billion.
