With mines in the Americas, Africa, Australia, and Papua New Guinea, gold giant Newmont Corp. acquired Australian rival Newcrest Mining Ltd. for A$28.8 billion ($19.2 billion), solidifying its position as the world’s largest producer of bullion.

The deal, which has now been unanimously approved by Newcrest’s board and is awaiting regulatory approval, surpasses Newmont’s acquisition of rival Goldcorp Inc. in 2019 as the largest one to date in the gold mining industry. Although it had earlier this month stated that it intended to recommend an improved takeover offer from its suitor, Newcrest, whose then chief executive officer abruptly resigned at the end of last year, rejected the initial overtures.

The Newmont’s Outlook

While the deal will significantly increase Newmont’s exposure to copper, a metal where demand is anticipated to outpace supply as the evolution away from fossil fuels picks up speed, it also increases exposure to gold at a time when gold prices are testing record highs.

On Monday, Newcrest’s shares increased as much as 1.9% in Sydney after the producer released a statement confirming the deal’s specifics.

As they deal with harder-to-mine deposits and rising input costs, gold miners around the world are concerned about the possibility of stagnating production. As businesses look to expand their size in order to increase volumes and improve efficiencies, this is seen as a catalyst for more mergers and acquisitions.

The Newmont Deal

Now the focus will be on Newmont’s capacity to integrate its pricey and substantial target, extract savings, and sell non-core assets in order to produce the $500 million in annual synergies that were promised. The Denver-based miner plans to use portfolio optimization to raise cash flows by $2 billion in the two years following the deal’s closing.