Newmont to Acquire Newcrest for $17B
Newmont Corp, the US gold miner, has offered $17 billion to acquire Australia’s Newcrest Mining Ltd., creating a global precious metal giant as miners look to increase their reserves. The stock-only proposal would be the largest takeover globally this year and follows a $4.8-billion takeover of Yamana Gold Inc. The acquisition of Newcrest is expected to occur as the gold industry experiences a sustained period of growth since 2020 and top executives predict further consolidation in the sector as producers face declining output and higher input costs. Newmont confirmed its offer in a statement, saying the deal “presents a powerful value proposition” to both businesses. Newcrest shares rose 9.3% to A$24.53 in Sydney, while Newmont shares fell 5.8% in New York. The takeover, if completed, would be one of the largest in Australian history and would increase Newmont’s presence in copper. Newcrest’s majority of revenue comes from gold, with the rest from silver and copper, and it plans to increase its copper component to take advantage of the expected surge in demand. Under the proposed deal, shareholders would receive 0.38 Newmont shares for each Newcrest share, equivalent to a 21% premium to Friday’s close. The board is considering the proposal, subject to Newmont’s grant of exclusive due diligence.
Newcrest Stock Price Forecast & Analysis
Based on the Newcrest Mining Ltd stock forecasts from three analysts, the company’s future looks positive with an average target price of CAD 25.08 for the next 12 months. The average analyst rating for the company is “Strong Buy,” which suggests a bullish outlook for the stock. Stock Target Advisor presents a slightly bearish view, with 4 positive signals and 5 negative signals. Despite this, Newcrest Mining Ltd’s stock price has been relatively stable in recent times, with a change of -4.37% over the past week, +1.00% over the past month, and -1.03% over the last year. The last closing price for the company was CAD 20.11, indicating that its stock has been performing well and could potentially continue to do so in the future based on the average analyst target price and rating.
