Australian gold miner, Newcrest Mining, confirmed on Friday that the proposed buyout by Newmont Corporation, worth A$26.2 billion ($16.68 billion), has secured all necessary government regulatory approvals.
Deal Details and Progress
The approvals received encompass those from the Australian Foreign Investment Review Board as well as competition authorities in Australia, Canada, and Papua New Guinea. Despite this significant step, the deal’s culmination hinges on the forthcoming Newcrest shareholder vote, set for Oct. 13.
Earlier in May, Newcrest, Australia’s premier gold miner, had endorsed the takeover bid from Newmont. This proposed transaction ranks as the third-largest involving an Australian entity.
In a recent update, Newmont disclosed that it garnered approvals from the Securities Commission of Papua New Guinea and the Philippine Competition Commission. Both Newmont, the reigning largest gold producer globally, and Newcrest forecast the deal’s consummation in this year’s fourth quarter, contingent on meeting standard closing conditions.
Future Expectations
Post-acquisition, Newmont anticipates the merged entity will spawn annual pre-tax synergies amounting to $500 million. These synergies are projected to materialize within two years after the deal’s closing. Further enhancing its optimistic outlook, Newmont also highlighted a target of netting a minimum of $2 billion through portfolio optimization in the same timeframe.
