Newmont Corporation has announced that the Australian Treasurer and the Japanese Fair Trade Commission (JFTC) has cleared it to proceed with the acquisition of Newcrest Mining.
Following a review by the Foreign Investment Review Board (FIRB), Newmont was issued a No Objection Notification (NON), which is conditioned upon compliance with standard tax conditions associated with the Federal Government’s taxation laws.
JFTC issued a clearance letter allowing closing of the proposed transaction to proceed any time after 30 September 2023.
Newmont continues advancing other regulatory approvals and expects to close the transaction in the fourth quarter of 2023.
In August, the Australian Competition and Consumer Commission also cleared the proposed acquisition and conveyed its recommendation to the FIRB. Remaining regulatory approvals include the Philippine Competition Commission (PCC), with both Newmont and Newcrest continuing to engage with the PNG Government and regulators about other approvals and clearances for the transaction.
Newmont’s President and CEO, Tom Palmer, said that following a thorough review by regulators, the company is pleased that the transaction has been given the green light to proceed in Australia and Japan.
“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 centre of gravity for Newmont’s global business,” Mr Palmer said.
On 14 May, Newmont announced its definitive agreement to acquire Newcrest. The combination would create a world-class portfolio of assets with the highest concentration of Tier One operations, primarily in favourable, low-risk mining jurisdictions.
Upon closing of the transaction, the combined company could deliver a multi-decade production profile from ten large, long-life, low cost, Tier One 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 optimisation in the first two years after closing.
