Why Newmont Stock Is Sliding Today

Newmont Corp NEM shares are trading lower Monday after the company proposed an all-stock acquisition of Newcrest Mining Ltd NCMGY.

What Happened: Newmont said it submitted a non-binding proposal to acquire 100% of the issued share capital of Newcrest via a scheme of arrangement.

The proposal would result in a combination on the basis of .38 Newmont shares per Newcrest share. Newcrest would own 30% of the combined company and Newmont would own 70%.

"We believe a combination of Newmont and Newcrest presents a powerful value proposition to our respective shareholders, workforce and the communities in which we operate. The proposed transaction would join industry-leading portfolios of assets and projects to create long-term value across the combined global business," said Tom Palmer, president and CEO of Newmont.

Newmont is the world's leading gold company. It also produces copper, silver, zinc and lead. 

Related Link: Newmont Offers To Acquire Gold Producer Newcrest Mining

NEM Price Action: Newmont has a 52-week high of $86.37 and a 52-week low of $37.45. 

The stock was down 6.12% at $46.80 at time of publication, according to Benzinga Pro.

Photo: courtesy of Newmont Corp.

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