Molycorp Completes Acquisition of Neo Material Technologies
June 21.06.2012, XNUMX www.institut-seltene-erden.org - It was another eventful month in the rare earth sector (REE), although prices are still low. Investor focus has been primarily on a major merger and the potential market-changing guidelines announced in China.
Molycorp completes acquisition
US-based Molycorp (NYSE: MCP) has completed the acquisition of the Canadian rare earth company Neo Material Technologies (TSX: NEM) to launch an integrated, mine-to-magnet strategy based rare earth company ,
As part of the deal, Molycorp can now mine rare earths in California and process them into oxides and alloys in facilities around the world. In addition, as part of the Neo acquisition, Molycorp can produce coated rare earth magnets through Neo's subsidiary Magnequench.
The approximately 1.17 billion dollar deal gives Molycorp access to Neo's patents and, as the news service Reuter reports, supports the company in China, where Neo does business.
"We believe this acquisition represents a win-win situation," said Byron Capital market analyst Jon Hykawy in a statement to clients last month. "It should not only significantly increase Molycorp's profit, but also reduce the start-up risk of Molycorp's own treatment facility." The acquisition expects the acquisition to increase profits and cash flow.
Source: Institute of Rare Earths and Metals eV www.institut-seltene-erden.org
