Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Newcrest investors strongly approve $17 billion Newmont takeover

Published 10/12/2023, 08:46 PM
Updated 10/12/2023, 11:42 PM
© Reuters.

By Scott Murdoch

SYDNEY (Reuters) -Newcrest Mining shareholders have voted strongly in favour of accepting the A$26.2 billion ($16.81 billion) buyout bid from global gold mining giant Newmont Corporation, Australia's largest corporate takeover this year.

The company announced on Friday that 92.63% of the votes cast by Newcrest shareholders were in favour of the deal going ahead, exceeding the requirement for at least 75% support.

A Federal Court hearing is due to be held on Tuesday, in the final step for the takeover to be ratified.

On Wednesday, Newmont shareholders meeting in the U.S. voted more than 96% in favour of the world's largest gold producer buying its Australian rival.

The deal is the third-largest ever involving an Australian company, LSEG data showed, and one of the biggest global buyouts in 2023.

Newmont said in May it would offer Newcrest shareholders 0.400 Newmont share for each share held, after Newcrest's board in February rejected an earlier offer of 0.38 Newmont shares.

Newmont is also allowing Newcrest to pay a franked special dividend of up to $1.10 per share on the implementation of the deal, returning tax credits to Australian shareholders.

Newcrest last week said Newmont had received all government regulatory approvals required for the deal to go through, including from Australian Foreign Investment Review Board and competition authorities in Australia, Canada and Papua New Guinea.

© Reuters. FILE PHOTO: A small toy figure and gold imitation are seen in front of the Newmont logo in this illustration taken November 19, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

Mergers and acquisition activity in Australia has fallen 25.7% in the first three quarters of 2023 compared to the same time last year, according to LSEG data.

($1 = 1.5588 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.