Molycorp Acquiring Neo Material Technologies
Magnequench’s Neo powders are used to produce bonded magnets, generally used in micro motors, precision motors, sensors, and other applications requiring high levels of magnetic strength, flexibil-ity, small size and reduced weight. Rare earth and zirconium applications include catalytic converters, computers, televi-sion display panels, optical lenses, mobile phones and electronic chips.
The acquisition will expand Moly-corp’s technology portfolio to include production of magnetic powders and rare metals including gallium, indium and rhenium, as well as zirconium oxide. The company’s rare metals prod-ucts are primarily used in the wireless, LED, flat panel, turbine, solar and cata-lyst industries.
“This transaction will link two unique companies, one with a world-class, high-quality resource and the other with world-class rare earth product design and pro-cessing capabilities,” Molycorp President and CEO Mark Smith said. “Neo Materials is recognized throughout the industry for its exceptionally high-quality production and processing capabilities, its patented technology platform, and its ability to consistently meet demanding customer specifications. With this com-bination, Molycorp will be in a unique position to enhance our time to market and provide new global customer seg-ments with rare earth metals, oxides and alloy powders that are unmatched today. We see significant opportunities for growth as well as powerful synergies through this transaction.”The transaction will be implement-ed through a court-approved Plan of Arrangement under Canadian law and is subject to the approval of Neo Materials shareholders, relevant regula-tory approvals, and other customary clos-ing conditions. The transaction is expect-ed to close in the second or third quarter of 2012.