Noront accepts Forrest’s ‘superior’ takeover offer

Oct 19, 2021 – 3.02am

Canadian miner Noront Resources agreed to be acquired by Andrew Forrest’s Wyloo Metals in a deal that tops a rival offer from BHP Group.

Noront agreed to Wyloo’s “superior” offer of C70¢ (76¢) a share, which represents a 27 per cent premium to BHP’s friendly offer of C55¢ from July, the Toronto-based company said Monday in a statement. BHP has been given five business days to match the offer from the firm controlled by Forrest, an Australian mining magnate.

Shares of Noront fell 6.2 per cent to C76¢ at 9.55 am in trading in Toronto.

Wyloo and BHP have been in a bidding war to gain access to Noront’s high-grade Canadian nickel deposits in a largely untapped region of northern Ontario dubbed the Ring of Fire. Mining heavyweights are racing to control more supplies of raw materials that are key to transitioning to low-carbon energy sources. Nickel is one of the key metals used in lithium-ion batteries for electric vehicles.

Wyloo already owned about 24 per cent of Noront’s stock and took further steps last month to lift its stake to 37.3 per cent by swapping convertible debt into common shares.