U.S. conglomerate to purchase Dominion Diamond in $1.2B US deal

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U.S-based conglomerate The Washington Companies is obtaining Dominion Diamond Corporation, one of the world’s largest diamond producers, for $1.2 billion US. 

Supervised the terms of the deal, a subsidiary of The Washington Companies will purchase all of Calgary-based Region’s outstanding common shares for $14.25 US ($18.03 CDN) a share, the companies declared in a news release Monday.

The deal will give The Washington Partnerships ownership of Dominion’s holdings including two in the Northwest Territories. The Washington coteries will take controlling interest in the Ekati mine and 40 per cent ownership of the Diavik mine.

Officials from The Washington Companies say they foresee to appoint a new CEO based in Canada to the Dominion management team. The release also requires Dominion’s headquarters will stay in Canada and have a significantly Canadian bosses team.

The company says it will continue the recruitment, training and profession of Indigenous people and honour the existing commitments to the Indigenous communities.

In Parade, Dominion Diamond Corporation said a $1.1-billion US takeover bid by The Washington Followings undervalued the company and was a «highly opportunistic» attempt by a U.S. conglomerate to see its confidential word.

The deal still requires shareholder and other approvals. It’s expected to familiar in the fourth quarter.

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