Newmont Corporation has announced that following a review by the Australian Competition & Consumer Commission (ACCC), the agency has cleared the company to proceed with its proposed acquisition of Newcrest Mining Limited.
The ACCC is expected to convey its clearance of the transaction to Australia’s Foreign Investment Review Board for consideration. Meanwhile, Newmont continues advancing other regulatory approvals and expects to close the transaction in the fourth quarter of this year, 2023.
Earlier this month, Korea’s Fair Trade Commission and Papua New Guinea’s (PNG) Independent Consumer & Competition Commission cleared the proposed acquisition. In July, the Canadian Competition Bureau issued a “no action” letter also clearing the transaction.
Other regulatory approvals to be secured for Newmont’s proposed acquisition of Newcrest include: the Australia Foreign Investment Review Board (FIRB), the Japan Fair Trade Commission (JFTC), and the Philippine Competition Commission (PCC).
Newmont and Newcrest also continue engaging with the Papua New Guinea government and regulators about other approvals and clearances for the transaction.
The combination would create a world-class portfolio of assets with the highest concentration of Tier-1 operations, primarily in favourable, low-risk mining jurisdictions.
Upon closing of the transaction, the combined company would deliver a multi-decade production profile from 10 large, long-life, low-cost, Tier-1 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 the first two years after closing through portfolio optimisation.
Completion of Due Diligence
Newmont Corporation announced that following completion of due diligence, it has entered into a binding Scheme Implementation Deed (“SID”) under which Newmont will acquire 100 percent of the issued share capital in Newcrest by way of an Australian court-approved Scheme of Arrangement (the “Scheme” or the “Transaction”).
“The combination of Newmont and Newcrest represents an exceptional value proposition for shareholders and other stakeholders. It creates an industry-leading portfolio with a multi-decade gold and copper production profile in the world’s most favorable mining jurisdictions,” said Tom Palmer, President and CEO of Newmont.
“Following a robust due diligence process, we have identified a number of opportunities to unlock substantial value and will apply our experience and expertise to Newcrest’s complementary acquisition.
“This transaction also increases Newmont’s annual copper production – a metal vital for the new energy economy – and adds nearly 50 billion pounds of copper reserves and resources from Newcrest to our robust and balanced portfolio. We intend to quickly realize these opportunities to create superior value for our shareholders, workforce, host communities and governments.”
Tom Palmer
Newcrest’s Chairman, Peter Tomsett, added saying “This transaction combines two of the world’s leading gold producers, bringing forward significant value to Newcrest shareholders through the recognition of our outstanding growth pipeline”.
“In addition to the ongoing benefits of merging these premier portfolios, the combined group will set a new benchmark in gold production while benefitting from a material and growing exposure to copper and a market leading position in safety and sustainability. The Newcrest Board is unanimously recommending the proposal. We are very proud of the entire Newcrest team for building a world class metals business, which will form a key part of the combined group. We believe our shareholders and other stakeholders can look forward to an exciting and prosperous future.”
Peter Tomsett
For the last eight years, Newmont has been recognized as the top gold miner in the Dow Jones Sustainability Index, and regularly ranks as the most transparent company for sustainability disclosure in the S&P 500. Beyond Newcrest’s well-established sustainability credentials and top quartile industry ranking, Newmont will apply its proven sustainability practices and leadership to Newcrest’s assets by bringing a clear focus on mitigating safety risks along with visible, felt leadership in the field to drive a fatality-free business.
Also, by building on Newmont’s sustainability leadership and commitment to meaningful social engagement based on inclusion, transparency and integrity in order to be the partner of choice for governments, host communities, suppliers and workforce.
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