Newmont
has agreed to buy Australian gold and copper miner
Newcrest
for $17.5 billion in what would be the largest ever gold-mining deal.
The takeover would cement
Newmont’s
(ticker: NEM) position as the world’s largest producer of gold, while also increasing its exposure to copper, a metal key to the global transition to cleaner energy.
The potential acquisition comes as gold prices are hovering near all-time highs, as investors have sought safety in recent months amid U.S. regional bank failures and broader economic concerns.
“[The deal] creates an industry-leading portfolio with a multi-decade gold and copper profile in the world’s most favorable mining jurisdictions,” Newmont CEO Tom Palmer said in a statement.
“This transaction also increases Newmont’s annual copper production, a metal vital for the new energy economy and adds nearly 50 billion pounds of copper reserves and resources from Newmont to our robust and balanced portfolio,” he added.
Newmont raised its offer for
Newcrest Mining
last month after the Australian miner rejected an earlier offer tabled in February.
Newcrest shareholders will receive 0.4 Newmont shares for each Newcrest share they hold, as well as be permitted to pay a special dividend of up to $1.10 a share, in line with the revised offer.
Newmont stock fell 0.4% in premarket trading Monday.
Write to Callum Keown at callum.keown@barrons.com
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