GREENWOOD VILLAGE, Colo. (AP) -- Molycorp Inc. is buying Neo Material Technologies Inc. for about 1.3 billion Canadian dollars ($1.31 billion), as it seeks to expand its markets in Asia.
Molycorp, a rare earth products company based in Greenwood Village, Colo., will pay for the Canadian rare earth processor with a combination of cash and stock. Shareholders of Neo Material will get roughly CA$11.30 per share, comprised of CA$8.05 per share in cash and the remainder in Molycorp stock.
Rare earth materials are used in various electronics, including flat screens and smartphones. About two-thirds of Neo's sales are to China and Japan.
The deal was approved by the boards of both companies but still needs approval from Neo Material shareholders. It is expected to close in the second or third quarter of 2012.