Newmont and Newcrest also continue engaging with the PNG Government and regulators about other approvals and clearances for the transaction.
Newmont secures approval form Australia's FIRB and Japan’s JFTC. (Credit: 652234 from Pixabay)
Newmont Corporation (NYSE: NEM, TSX: NGT) today announced that, following a review by Australia’s Foreign Investment Review Board (FIRB), the Treasurer has cleared the Company to proceed with its proposed acquisition of Newcrest Mining Limited (ASX, TSX, PNGX: NCM), issuing a No Objection Notification (NON). The NON is conditioned upon compliance with standard tax conditions associated with the Commonwealth’s taxation laws. Last week, Japan’s Fair Trade Commission (JFTC) issued a clearance letter allowing closing of the proposed transaction to proceed any time after September 30, 2023.
Newmont continues advancing other regulatory approvals and expects to close the transaction in the fourth quarter of this year. In August, the Australian Competition & Consumer Commission also cleared the proposed acquisition and conveyed its recommendation to the FIRB. Remaining regulatory approvals include 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.
“Following a thorough review by regulators, we are pleased that the transaction has been given the green light to proceed in Australia and Japan,” said Tom Palmer, Newmont’s President and Chief Executive Officer. “In addition to further strengthening Newmont’s operational footprint, our entry into the Australian investment market will allow us to attract shareholders from Australia and the Asia Pacific region, positioning Australia as a key center of gravity for Newmont’s global business.”
On May 14, Newmont announced its definitive agreement to acquire Newcrest. The combination would create a world-class portfolio of assets with the highest concentration of Tier 1 operations, primarily in favorable, 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 $500 million, expected to be achieved within the first 24 months, while also targeting at least $2 billion in cash improvements through portfolio optimization in the first two years after closing.