Newmont, a U.S. gold miner, has agreed to acquire Australian peer Newcrest Mining in a deal valued at $17.5 billion.
Moreover, the deal, expected to close in the second half of 2023, will create the largest gold mining company with a market capitalization of over $100 billion.
Under the deal, Newmont is offering 0.400 of its own shares for each Newcrest share, which represents a premium of 30.4 percent to Newcrest’s closing price on Friday.
With the acquisition, Newmont will be able to expand its portfolio of assets, increase its production, and have a larger presence in the copper market, which is seen as a key metal for the future of the energy industry.