Newmont to Buy Newcrest for $17.5 Billion. Why It May Have Struck More Than Gold.

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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.

Write to Callum Keown at [email protected]