US-based Newmont has completed its previously announced A$26.2bn ($16.8bn) acquisition of rival Australian gold mining company Newcrest Mining.

According to Newmont, the transaction results in the formation of the world’s leading gold company with strong copper production.

Last month, the American company’s shareholders cast over 96% votes in favour of the acquisition.

Following the completion of the deal, the eligible shareholders of Newcrest Mining have received the scheme consideration of 0.4 shares of Newmont. The latter has issued around 358 million of its new shares in this regard.

The deal implies an enterprise value of A$28.8bn ($19.26bn).

Trading in Newcrest Mining’s shares was suspended from the Australian Stock Exchange (ASX), Papua New Guinea National Stock Exchange (PNGX), and the Toronto Stock Exchange (TSX) at the close of trading on 26 October 2023.

Through the acquisition of Newcrest Mining, Newmont aims to strengthen its position through the combination of high-quality operations, projects and reserves concentrated in low-risk jurisdictions, including 10 Tier 1 operations.

The combined business is also estimated to generate annual pre-tax synergies of $500m within the first 24 months after the completion of the deal.

It can also bring a minimum of $2bn in cash improvements through portfolio optimisation in the first two years after closing.

Newmont president and CEO Tom Palmer said: “Today marks a historic milestone in our company and the industry with the successful completion of this transformational acquisition of Newcrest by Newmont.

“Our attention now turns to safely, efficiently, and responsibly integrating Newcrest’s assets and people into Newmont’s proven operating model, so we can accelerate the delivery of our value-focused strategy for all our stakeholders.”