What's going on?

US gold miner Newmont made a top-dollar bid for Australian rival Newcrest over the weekend.

What does this mean?

With names as similar as �Newcrest� and �Newmont�, you might suspect that these two mining firms are cut from the same cloth. And you�d be right: Newmont created Newcrest as its Australian arm in the 1960s, before spinning it off a few decades later. But with mining costs spiking and gold deposits harder to come by, companies are looking to dealmaking for more security and scale. Now Newmont, already the world�s biggest gold miner, is keen to buddy up with its old pal: the firm launched an all-share bid valuing the Aussie firm at $17 billion, 21% more than the company was worth before the bid was announced (tweet this). This move could be huge: as well as creating a global gold powerhouse, it would give the US titan access to Newcrest�s copper � an uber-hot commodity with EVs and renewable energy on the rise.

Why should I care?

Zooming in: Not set in stone.
The move has the makings of 2023’s biggest deal-making blockbuster so far, but there�s still a ways to go. For one, the deal would hand one company 80% of Australia�s biggest gold mines, something the government would have to green-light. And for another, this offer could just spark a bidding war: Newcrest already rejected a lower offer by Newmont, and some analysts reckon rivals Barrick and Agnico Eagle will be sizing the firm up too.

The bigger picture: Diamond in the rough.
Gold has been gleaming bright in recent months, with prices up 15% since November, and there’s a chance the shining streak could last. After all, it looks like economies could fall into a slump this year, forcing central banks to pause or even reverse their hikes. And if that happens while inflation�s still lingering, then gold � the world�s oldest safe haven and inflation hedge � could have a field day.