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Newmont’s $26 billion takeover of Newcrest clears Australian regulatory hurdles

Gold miner Newmont Corp has taken a significant step toward acquiring Newcrest (ASX:NCM) with its A$26 billion all-paper takeover offer, as Australia’s Foreign Investment Review Board (FIRB) has approved the deal. This marks the second crucial approval from Australian regulators in a month, following the green light from the ACCC in August. Japan’s Fair Trade Commission also granted clearance last week, paving the way for the transaction to close by the end of next month.

In a statement on Monday, Newmont stated, “Newmont continues advancing other regulatory approvals and expects to close the transaction in the fourth quarter of this year.”

If the deal proceeds, Newcrest shareholders will receive 0.400 Newmont shares for each share, with an implied value of A$29.27 per share. However, the deal still hinges on a crucial Newcrest shareholder vote scheduled for October 13, along with approvals from regulators in the Philippines and Papua New Guinea.

Tom Palmer, Newmont’s President and Chief Executive Officer, expressed his satisfaction with the regulatory approvals, stating, “Following a thorough review by regulators, we are 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 center of gravity for Newmont’s global business.”

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