Share this!

An aerial view of the Ekati mine, 300 kilometres northeast of Yellowknife. The mine and other Dominion Diamond holdings has been purchased by a U.S.-based conglomerate. (Dominion Diamond Corporation) U.S-based conglomerate The Washington Companies is buying Dominion Diamond Corporation, one of the world’s largest diamond producers, for $1.2 billion US.

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

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

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

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

In March, Dominion Diamond Corporation said a $1.1-billion US takeover bid by The Washington Companies undervalued the company and was a "highly opportunistic" attempt by a U.S. conglomerate to see its confidential information.

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

(Visited 2 times, 1 visits today)

Share this!