US-based Newmont has secured clearance from the Australian Competition and Consumer Commission (ACCC) for its previously announced A$28.8bn ($18.6bn) acquisition of rival Australian gold mining company Newcrest Mining.

The competition regulator will convey its approval of the proposed merger for the consideration of Australia’s Foreign Investment Review Board (FIRB).

Newmont said that it is advancing towards obtaining other regulatory approvals and expects the deal to be completed in Q4 2023.

The proposed acquisition was approved by Korea’s Fair Trade Commission and Papua New Guinea’s (PNG) Independent Consumer & Competition Commission earlier this month.

In July 2023, the Canadian Competition Bureau issued a “no action” letter, which cleared the deal under Canadian competition law.

Newmont also expects to receive regulatory approvals from the FIRB, the Japan Fair Trade Commission (JFTC), and the Philippine Competition Commission (PCC).

The two gold miners signed a binding scheme implementation deed (SID) in May 2023.

The deal represents an equity value of A$26.2bn ($16.9bn) to the Australia-based gold mining company.

Under the terms of the SID, shareholders of Newcrest Mining will exchange each of their shares in the company for 0.4 shares of Newmont.

Besides, Newcrest Mining will be allowed to pay a franked special dividend of up to $1.1 per share.

Following the completion of the implementation, Newcrest Mining’s shareholders will hold a 31% stake in the combined company.

Upon the closing of the deal, the enlarged company aims to deliver a multi-decade production profile from 10 large, long-life, low cost, Tier 1 operations.

The merged entity will also deliver an increased annual copper production primarily from Australia and Canada.

Furthermore, the combined business is estimated to generate annual pre-tax synergies of $500m within the first 24 months.