The US miner’s stock-only proposal would be the largest takeover deal globally so far this year. It follows a $4.8-billion takeover of Yamana Gold Inc. by Pan American Silver Corp. and Agnico Eagle Mines Ltd. that’s expected to close by the end of March and comes as gold prices have experienced a sustained period of strength since 2020.
Newcrest shares closed up 9.3% at A$24.53 in Sydney, while Newmont shares fell as much as 5.8 in New York. Already the world’s biggest gold miners with a market value of nearly $40 billion, Newmont made an earlier lower bid for Newcrest that its board rejected. The US miner is effectively offering to buy back its old spinoff, as Newcrest was originally set up as its Australian subsidiary in the 1960s.
The deal would also increase Newmont’s footprint in copper, which is becoming more sought after due to its use in renewable energy and electric vehicles as economies de-carbonize.