The newest offer from Newmont as it offering up 0.4 shares of NEM stock in exchange for Newcrest shares. This is better than the prior offering, which valued Newcrest at $17 billion. The offer also includes a special dividend of $1.10.
Investors will note that this offer for Newcrest stock represents a 40% premium over its closing price before the initial bid was made. It’s also worth keeping in mind that the combination of Newmont and Newcrest would result in a massive player in the precious metal mining sector.
Tom Palmer, CEO of Newmont, said the following about the deal in a statement obtained by Bloomberg:
“Together as the clear gold-mining leader, we would be well-positioned to generate strong, stable and lasting returns with best-in-class sustainability performance for decades to come.”
NEM Stock Movement on Tuesday
Shares of NEM stock are down slightly as of Tuesday morning. That’s not much of a surprise considering Newmont using its stock to acquire Newcrest. It’s typical for the acquirer of another company to see their shares fall after making an offer.
And it’s not just NEM stock that’s worth talking about on Tuesday!
We’ve got loads of other stock market news traders will want to know about today! That includes what has shares of crypto mining stock moving, as well as the latest on Virgin Orbit (NASDAQ:VORB) and PLx Pharma (NASDAQ:PLXP) stock. You can read up on all of this at the following links!
More Tuesday Stock Market News
- Why Are Crypto Mining Stocks MARA, RIOT, HUT Up Today?
- Why Is Virgin Orbit (VORB) Stock Down 27% Today?
- Why Is PLx Pharma (PLXP) Stock Down 38% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.