Newmont Corporation seals acquisition of Newcrest Mining, establishes global gold dominance

Newmont Corporation has finalized its acquisition of Newcrest Mining Limited, positioning itself as the world’s preeminent gold company with a strong side offering in copper production. The deal’s implied equity value of Newcrest stands at A$26.2 billion, including dividends, marking a notable transaction in the mining sector.

The completion of this deal places Newmont at the forefront of the mining industry, with more than half of the world’s Tier 1 gold assets now under its control. This amalgamation is not just about scale; it brings together high-quality operations and reserves predominantly in jurisdictions with low geopolitical risks. The combined entity is expected to generate pre-tax synergies amounting to $500 million within two years post-closing and project cash improvements of $2 billion through optimized portfolio management.

Central to the merger’s strategic benefits is Newmont’s bolstered industry stature in responsible mining, underpinned by a portfolio that promises decades of profitable and sustainable production. The acquisition encompasses a total of 10 Tier 1 operations, which are pivotal to Newmont’s promise of delivering value-focused strategies responsibly.

Moreover, the deal underlines Newmont’s dedication to shareholder returns, with a balanced capital allocation and a non-binding dividend payout that has exceeded $5 billion since the Goldcorp transaction in 2019. The expanded leadership team and regional teams, particularly in Australia and Canada, are set to bring extensive experience to the combined operations.

With Newmont issuing 357,691,627 new shares for the transaction, including various share types, the focus now shifts to the integration of assets and personnel. Tom Palmer, Newmont’s President and CEO, asserts, “Today marks a historic milestone in our company and the industry with the successful completion of this transformational acquisition of Newcrest by Newmont.”

This landmark deal, initially announced in May 2023, has set a new course for the global gold market. With the terms of the Scheme, Newcrest shareholders are positioned to receive a special dividend, enhancing the overall transaction value. Post-merger, the ownership distribution will see Newmont and Newcrest shareholders holding approximately 69 percent and 31 percent of the new entity, respectively, unifying operations across North America, Australia, South America, Africa, and the Asia-Pacific regions.

As the industry watches, Newmont’s next steps involve integrating the robust Newcrest operations into its model, aiming for a seamless merger that promises a new era of mining leadership and innovation.