Molycorp Looking to Increase Returns with Neo Materials Takeover

Bloomberg reported that Molycorp’s (NYSE:MCP) takeover of Neo Material Technologies (TSX:NEM) is a move designed to boost shareholder value.

As quoted in the market news:

The owner of the largest rare-earth deposit outside China yesterday agreed to buy Neo Material Technologies Inc. for C$1.3 billion ($1.3 billion) in cash and stock. At 4.7 times earnings before interest, taxes, depreciation and amortization, the deal is the cheapest by a diversified metals producer on record.

Click here to read the full Bloomberg report.