Major mining companies Newmont and Glencore have each tweaked their multibillion-dollar bids to buy out rival companies.
Newmont Corp.
NEM,
-2.29%
said its offer for Australia-based Newcrest Mining Ltd.
NCM,
+0.29%
NCMGY,
+6.58%
would strengthen its position as the world’s top gold company and would also boost its copper production.
Newcrest Mining shareholders are being offered 0.4 Newmont shares, and Newmont is supporting a special dividend of $1.10 per share to be paid around the deal’s closure, in a deal that that Newcrest says is worth 32.87 Australian dollars per share, or a total of A$29.4 billion (equivalent to $19.6 billion).
Newmont has made two previous indicative proposals for Newcrest, but Newcrest has now agreed to give Newmont confirmatory due diligence, which Newmont expects to complete within four weeks.
Glencore PLC
GLEN,
+3.26%,
meanwhile, tweaked its previous bid for Canada-based Teck Resources Ltd.
TECK,
+1.24%
TECK.B,
+0.92%.
The new offer would combine both companies’ metals businesses while spinning off each company’s coal business.
The new offer would give Teck investors 24% of the combined metals company and $8.2 billion in cash. Glencore says the deal would give those investors the option of a full exit from the coal business without having to own Glencore’s thermal coal operations.
Teck had previously said “there is no market for shares of a massive new thermal coal-focused company.”
Teck has been resisting Glencore’s overtures and instead is recommending a plan to separate its base metals and steelmaking coal businesses.
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