Newmont Corp. has announced that, following a review by the Australian Competition & Consumer Commission (ACCC), it has been cleared to proceed with its proposed acquisition of Newcrest Mining Ltd. The ACCC is expected to convey its clearance of the transaction to Australia’s Foreign Investment Review Board for consideration.
Newmont continues advancing other regulatory approvals and expects to close the transaction in the fourth quarter of this year. Earlier this month, Korea’s Fair Trade Commission and Papua New Guinea’s (PNG) Independent Consumer & Competition Commission cleared the proposed acquisition. In July, the Canadian Competition Bureau issued a ‘no action’ letter also clearing the transaction.
Other regulatory approvals to be secured for Newmont’s proposed acquisition of Newcrest include the Australia Foreign Investment Review Board (FIRB), the Japan Fair Trade Commission (JFTC), and the Philippine Competition Commission (PCC). Newmont and Newcrest also continue engaging with the PNG Government and regulators about other approvals and clearances for the transaction.
Newmont announced its definitive agreement to acquire Newcrest on 14 May. The combination would create a world-class portfolio of assets with the highest concentration of Tier 1 operations, primarily in favourable, low-risk mining jurisdictions. Upon closing of the transaction, the combined company would deliver a multi-decade production profile from 10 large, long-life, low cost, Tier 1 operations, and increased annual copper production primarily from Australia and Canada. The combined business is anticipated to generate annual pre-tax synergies of US$500 million, expected to be achieved within the first 24 months, while also targeting at least US$2 billion in the first two years after closing through portfolio optimisation.