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Newmont Goldcorp (NEM 46.39, +0.45, +1.0%): to acquire Newcrest in approx. $19 billion cash and stock deal

Newmont (NYSE:NEM) said Sunday it has entered into a binding agreement to acquire Newcrest Mining (OTCPK:NCMGF) (OTCPK:NCMGY) via an Australian court-approved scheme of arrangement.

Newcrest (OTCPK:NCMGF) (OTCPK:NCMGY) said it recommends shareholders vote in favor of Newmont’s (NEM) offer, which comprises 0.400 of its own shares for each Newcrest share; Newcrest also is permitted to pay a special dividend of up to $1.10/share around the time any deal completes.

Under the deal, Newcrest (NCMMGF) (OTCPK:NCMGY) shareholders would receive 0.4 Newmont (NEM) share for each share held, with an implied value of A$29.27/share (US$19.53/share), a 30.4% premium to where its shares were trading in early February before Newmont’s interest was known.

The takeover requires approval from Australia’s Foreign Investment Review Board as well as favorable votes from shareholders of the two companies, among other regulatory approvals.