Newmont Corp has strengthened its position as the world's top gold producer after finalizing the acquisition of an Australian miner Newcrest.
“Today marks a historic milestone in our company and the industry with the successful completion of this transformational acquisition of Newcrest by Newmont,” said Newmont's president and CEO Tom Palmer.
The combined yearly output of a merged company will amount to 8 million ounces of gold (250 t). Newmont also operates sizeable copper mining projects.
After the deal which was valued at around $15 billion, Newmont's shareholders will own about 69% of shares of the merged company, while the remaining 31% stake will be distributed to former Newcrest's shareholders.
After almost a year-long acquisition process, the group’s attention is now turning to safely integrating Newcrest’s assets and people into Newmont.
The transaction strengthened Newmont’s position as a gold mining leader through the combination of high-quality operations, projects and reserves concentrated in low-risk jurisdictions, including ten tier-one operations.
Now, with all regulatory hurdles out of the way, the combined company can start a process to sell mines and decide which exploration projects to prioritize over the next two years, Palmer said.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
