Molycorp acquires rare earth processor $1.3 billion

Molycorp acquires rare earth processor for $1.3 billion

12:48 AM, 12th March 2012
Molycorp acquires rare earth processor for $1.3 billion
Mark A Smith, President and CEO, Molycorp.

GREENWOOD VILLAGE, US/ONTARIO, CANADA: Molycorp will acquire Neo Material Technologies for approximately $1.3 billion. Neo Materials shareholders will receive consideration equal to $11.30 per share, comprising of $8.05 per share in cash and 0.122 Molycorp shares based on Molycorp’s 20 day volume weighted average price of $26.66.

The transaction will create a global, vertically integrated rare earth technology leader and give Molycorp increased sales opportunities across Asia. The combination will expand Molycorp’s technology portfolio to include production of magnetic powders and rare metals including gallium, indium and rhenium as well as zirconium oxide. This will enable Molycorp to produce and market materials that are integral to a wide variety of strategic technologies, including advanced electronics, thin film photovoltaics, LEDs, flat screens, super alloys, catalytic converters, mobile and smart phones, magnets, batteries.

“Neo Materials is recognized throughout the industry for its exceptionally high-quality production and processing capabilities, its patented technology platform and its ability to consistently meet demanding customer specifications. With this combination, Molycorp will be in a unique position to enhance our time to market and provide new global customer segments with rare earth metals, oxides, and alloy powders that are unmatched today. We see significant opportunities for growth as well as powerful synergies through this transaction,” said Mark A Smith, President and CEO, Molycorp.

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