Molybdenum Company ("Molycorp") and the Canadian Neo Material Technologies, Inc. ("NeoMaterials" or "Neo") announced on March 9, 2009, they signed a definitive agreement, molybdenum company for $ 1.3 billion acquisition of Neo companies. The two companies after the merger to form the most technologically advanced and vertical industry chain in the world ,that is the most complete one of the rare earth companies.
"This merger will linked to two characteristics of the rare earth enterprise, a world-class high-quality rare earth resources, and a rare earth products of world-class R & D and production processes. Molybdenum company's president and CEO Mark Neo is the industry-recognized quality of the rare-earth and deep-processing production companies, its proprietary platform, as well as the ability to ensure its continuing to meet the needs of its customers' products. combination of the two companies will strengthen the ability of the molybdenum company to market, Smith said, and to meet the needs of customers around the world on the rare earth metals, oxides and rare earth alloy powder. merger provides significant opportunities for developing to form a true sense of the combination. "
The merger of the molybdenum and NEO:
The business territory of molybdenum company would be extended to 11 countries after merger,. having a leading product development, production and sales capacity. With Neo's high-end technology and years of accumulated experience and know-how, molybdenum company will better serve existing and future customers. The merger will bring the company business operations and sales channels in China. China is the world's largest and fastest growing rare earth consuming countries. In 2010 and 2011 Neo company's sales in China and Japan accounted for 68% and 64% of total sales.
The merger will enable the molybdenum companies to expand the magnetic powder and rare metals such as gallium, indium, rhenium, and zirconium oxide production business. This will make molybdenum company to expand its field in the high-end product sales, including the advanced electronics industry, thin film photovoltaic systems, LED, flat panel display, super alloys, catalytic converters, cell phones and smart phones, magnets and batteries, etc.. Neo expertise also make molybdenum company to provide customers with value added, high purity rare earth and rare metal products, some products up to 99.99999% purity.
"Merge has a great industrial significance." Mr. Constantine said ,who is the chief of Neo's operating officer , "Beside of China ,this is the best rare earth resources and the best rare earth production technology enterprise combined .The new company will be not only in the rare earth industry, will also be formed to a wide range of global coverage among the magnetic materials of high added value, rare and other strategic metals production.”