Mining giant Newmont has concluded the $16.8bn (A$26.2bn) takeover of Newcrest Mining, leading to the formation of what it claims to be the globe’s leading gold miner.

The merged entity will also have a “robust” production of copper, stated Newmont.

Last month, Newcrest Mining’s shareholders approved the acquisition with 92.63% of the votes cast favouring the deal.

The transaction became legally effective on 18 October, followed by the delisting of Newcrest from the Australian Stock Exchange, Papua New Guinea National Stock Exchange and Toronto Stock Exchange on 26 October.

Newmont has issued a total of 357.6 million of its new shares to shareholders of Newcrest Mining, under the deal.

The miner claims that the combined group will have a portfolio comprising more than half of the world’s tier-one assets with long-life operations, ample exploration prospects, as well as value-accretive projects.

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By GlobalData

This consolidation is expected to generate $500m in annual pre-tax synergies within the first two years.

It can also bring in at least $2bn in cash improvements through portfolio optimisation within the same period.

According to Newmont, the merger will result in operations with scale, margin and mine life to provide returns for decades.

It is also said to bolster Newmont’s position as a leading gold miner through projects and reserves located in low-risk jurisdictions. The portfolio includes ten tier-one operations with decades of gold and copper production.

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.”