Newcrest Mining share price ASX started the week on a high note after the world’s biggest gold miner announced takeover plans. The NCM stock ended Monday’s trading session 9.27% higher at A$24.53. Newcrest Mining was the best performer in the S&P/ASX 200 index on Monday.
Takeover
Newcrest Mining Limited was in the spotlight earlier on Monday following takeover plans by its US-based rival Newmont. Newcrest Mining is the leading gold mining company in Australia, with extended operations beyond Australia.
Newmont, the world’s largest gold miner by output, launched an all-share bid over the weekend for its rival Newcrest Mining Limited. The offer values the Australian miner at almost $17 billion. The two mining giants are in talks about the biggest takeover offer announced this year. Data by Dealogic shows that Newmont’s offer to its Australian rival would be the biggest M&A deal announced so far this year.
Tom Palmer, Australian-born CEO of Newmont said:
“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,”
Focus will now shift to the Reserve Bank of Australia (RBA), which is set to announce its interest rate decision for February later tomorrow. Analysts anticipate a 0.25% interest rate hike. Central banks globally have been hiking interest rates in a bid to battle surging inflation. Last week, the US Federal Reserve hiked its interest rates by 0.25%, while the Bank of England and European Central Bank each reported a 0.50% incline.
Newcrest Mining Share Price Forecast
The daily chart shows that the Newcrest Mining share price has been moving sideways for the past few weeks. The stock has remained above the 50-day and 100-day moving averages. Its Relative Strength Index (RSI) has been edging lower but has remained in the neutral zone. Therefore, if the takeover deal goes through, the NCM stock price is likely to climb higher. If this happens, buyers will be targeting the resistance level at A$29.35.
