Newmont acquires Newcrest

Newmont Corporation has acquired Newcrest Mining (ASX:NCM) to create the world’s leading gold company.

This expansion of Newmont’s portfolio will include operations with scale, margin and mine life to generate robust and lasting returns for decades while supporting best-in-class sustainability performance.  

Newmont president and chief executive Tom Palmer says this marks a historic milestone for the company.

“Today marks a historic milestone in our company and the industry with the successful completion of this transformational acquisition of Newcrest by Newmont,” he said.

“Our attention now turns to safely, efficiently and responsibly integrating Newcrest’s assets and people into Newmont’s proven operating model, so we can accelerate the delivery of our value-focused strategy for all our stakeholders.”

The acquisition of Newcrest is expected to strengthen Newmont’s position as the gold-mining leader and generate annual pre-tax synergies of $500m within the first 24 months, together with at least $2b in cash improvements through portfolio optimisation in the first two years.

To acquire Newcrest, Newmont needed clearance from Papua New Guinea’s Independent Consumer & Competition Commission, and approvals from the Australian Competition and Consumer Commission, the Australia Foreign Investment Review Board, the Japan Fair Trade Commission, the Philippine Competition Commission and the Korea Fair Trade Commission.