Newcrest Bulks Up With $2.8 Billion Gold Deal to Add Canada’s Pretium
- Top Australian producer says deal to add 300,000 ounces a year
- Purchase is latest in a surge of M&A activity in gold sector
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Newcrest Mining Ltd. agreed to buy Pretium Resources Inc. in a cash and shares deal valuing the Canadian gold producer at about $2.8 billion, adding to a wave of consolidation in the sector.
Melbourne-based Newcrest will offer Pretium holders C$18.50 ($14.87) a share, a 23% premium to the target’s closing price Monday in Toronto. Pretium’s board has unanimously recommended the transaction, although it still requires the approval of two-thirds of the company’s shareholders.