Good evening,

Mega M&A, anyone?

While Origin Energy hogs the headlines on its $18.4 billion (likely shrinking) bid, we’ve found the year’s first big new potential deal.

Newcrest Mining, Australia’s biggest gold producer at about 2 million ounces a year, is understood to be sitting on an approach from one of the big global players, keen to roll it and its assets into what would become the world’s biggest gold miner.

Newcrest has been out firming up its defences, as it tries to work out whether the proposal is in the best interests of shareholders.

As always, it will be about value. The company’s trading with a $20 billion market capitalisation, and we expect the proposal in front of Newcrest is scrip in nature (that’s the way mega gold M&A tends to work). Is it better for Newcrest shareholders to own a slice (say a third) of a big global player, or keep going it alone as the ASX’s biggest gold miner?

As for the suitor, there are three contenders, each from North America: Newmont, Barrick Gold or Agnico Eagle. You could make a case for any of them.

It will be interesting to see what Newcrest says about our reporting on Monday. The miner’s been down this route before, but its board tends to be a tough negotiator.

Elsewhere, we check in on Australian Venue Co’s auction where BGH Capital has the whip hand, and get an update at Tyro Payments.

We also spotted Gresham’s distribution arm teeing up investor meetings for a new Blackstone fund.

Happy reading,
Anthony Macdonald, Sarah Thompson and Kanika Sood
Street Talk editors