Molycorp buys rare-earths processor in $1.3bn deal

Molycorp, the largest producer of rare-earth metals outside of China, says it will pay $1.3bn in cash and stock for Toronto-based Neo Material.

The deal – which brings together the upstream and downstream segments of the rare-earths industry in an unprecedented manner – sent shares of both companies soaring.

Expected to close by the third-quarter of 2012, the deal would give Neo Material access to a secure supply of rare-earths produced at Molycorp’s mine at Mountain Pass, California, where it hopes to expand production rapidly over the next few years.

Meanwhile,