Newmont Corporation confirmed that is has made offer to buy Australia-based Newcrest Mining for $16.9 billion to combine two of the gold mining sector’s top senior producers.

If the deal is completed, the all-share deal would be the largest mining takeover and the third largest corporate buyout in Australian history according to Refinitiv data.

“Newmont’s proposal to combine with Newcrest is on the basis of 0.380 Newmont shares per Newcrest share, which would result in the combined company being 30 percent owned by Newcrest and 70 percent owned by Newmont. This represents a compelling opportunity for the shareholders of both companies to share in the upside of putting together two complementary businesses,” Newmont wrote in a press release.

Reuters reported that Newcrest’s previous chief executive Sandeep Biswas recently stepped down leaving the company in search of new leadership. The proposed deal comes at a time in which global interest rates are expected to peak this year and turn down, improving the outlook for gold prices.

The Australian gold miner said that it was considering the proposal. Newmont, the world's biggest gold producer by market value and ounces produced, described the combination as "a powerful value proposition."

“We believe a combination of Newmont and Newcrest presents a powerful value proposition to our respective shareholders, workforce and the communities in which we operate,” said Tom Palmer, President and CEO of Newmont. “The proposed transaction would join industry-leading portfolios of assets and projects to create long-term value across the combined global business, and we welcome the consideration of Newcrest’s Board of Directors.”

Newmont remains fully committed to acting in the best interest of Newmont shareholders. Newmont and its Board of Directors advises shareholders need not take any action at this time as there can be no certainty that a transaction will be concluded.

Newmont has engaged BofA Securities, Centerview Partners LLC and Lazard as its financial advisers, and King & Wood Mallesons and White & Case LLP as its legal advisers.