SYDNEY AUSTRALIA: Newmont, the world’s largest gold miner, has agreed to acquire Australia’s Newcrest Mining in a deal worth $17.5 billion.
The deal, which is expected to close in the second half of 2023, would create the world’s largest gold mining company with a market capitalization of over $100 billion.
Newmont is offering 0.400 of its own shares for each Newcrest share, which represents a premium of 30.4% to Newcrest’s closing price on Friday. The deal is expected to be accretive to Newmont’s earnings per share by 10% in the first full year after closing.
The acquisition is a major strategic move for Newmont as it seeks to expand its portfolio of assets and increase its production. Newcrest has a number of high-quality gold mines in Australia, Indonesia and Papua New Guinea. The acquisition would also give Newmont a larger presence in the copper market, which is seen as a key metal for the future of the energy industry.
The deal is the latest in a wave of consolidation in the gold mining industry. In recent years, gold producers have been looking to merge or acquire smaller rivals in order to reduce costs and improve efficiency. The acquisition of Newcrest would give Newmont a significant competitive advantage in the global gold market.
The deal is also a sign of the growing importance of copper to the global economy. Copper is a key metal for the production of electric vehicles and renewable energy infrastructure. As the world transitions to a low-carbon economy, demand for copper is expected to grow significantly.
The acquisition of Newcrest would give Newmont a major foothold in the copper market. The company would also gain access to Newcrest’s expertise in copper mining. This would help Newmont to meet the growing demand for copper and to position itself as a leader in the transition to a low-carbon economy.