Australia’s Newcrest rejects Newmont’s $16.9 billion bid

Newcrest Mining stated on Thursday that it had rejected the $16.9 Billion offer by U.S-based Newmont Corp, claiming it doesn’t provide enough value to Newcrest shareholders.

Newcrest stated that the board had considered the indicative offer and decided unanimously to reject it.

However, the No. 1 gold miner in Australia said that it is willing to give access to limited, nonpublic information to Newmont on a nonexclusive basis for an improved proposal.

Reuters reported that Newmont is open to increasing its offer after concerns about its current bid being too low following recent leadership changes at the Australian firm.

Newmont is the largest producer of gold by market value and the number of ounces produced. If it wins its bid for Newcrest, it would be a major gold miner. The new company would produce almost twice the amount of yellow metal as Barrick Gold Corp, its closest competitor.

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