Newmont’s $16.7 billion Newcrest deal gets all regulatory nods; nears shareholder vote
9:24 pm Thursday, October 05th, 2023
(Reuters) -Australian gold miner Newcrest Mining said on Friday Newmont Corporation, its suitor for a proposed A$26.2 billion ($16.68 billion) buyout, had received all government regulatory approvals required for the deal to go through.
The deal still awaits the crucial Newcrest shareholder vote, scheduled for Oct. 13.
“The approvals include ones from the Australian Foreign Investment Review Board and competition authorities in Australia, Canada and Papua New Guinea,” Newcrest said in a statement.
Australia’s largest gold miner, Newcrest, had in May backed the takeover offer from Newmont, in what would be the third-largest deal ever involving an Australian company.
Newmont said on Wednesday it had received nods from the Securities Commission of Papua New Guinea and also the Philippine Competition Commission.
Newmont, the world’s largest gold producer, and Newcrest anticipate the transaction closing in the fourth quarter of this year, subject to the satisfaction of customary closing conditions.
Newmont said it expected the merged gold giant to generate annual pre-tax synergies of $500 million, likely to be achieved within the first two years post closing.
“The combined business is also targeting at least $2 billion in cash improvements through portfolio optimization in the first two years after closing,” the world’s largest gold miner added.
($1 = 1.5706 Australian dollars)
(Reporting by Rishav Chatterjee in Bengaluru; Additional Reporting by Nausheen Thusoo; Editing by Rashmi Aich)
