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Molycorp Looking to Increase Returns with Neo Materials Takeover
Mar. 09, 2012 11:04AM PST
Rare Earth InvestingBloomberg reported that Molycorp’s (NYSE:MCP) takeover of Neo Material Technologies (TSX:NEM) is a move designed to boost shareholder value.
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.