Newmont receives clearance in Australia and Japan for Newcrest acquisition

Newmont has received further clearance for its acquisition of Newcrest Minerals (ASX:NCM).

Following a review by Australia’s Foreign Investment Review Board (FIRB), the Treasurer has cleared Newmont to proceed with the acquisition, issuing a No Objection Notification (NON). The NON is conditional upon compliance with standard tax conditions associated with the Commonwealth taxation laws.

In early September, Japan’s Fair Trade Commission issued a clearance letter allowing closing of the proposed transaction to proceed any time after September 30, 2023.

Furthermore, in August the Australian Competition and Consumer Commission cleared the proposed acquisition and conveyed its recommendation to the FIRB.

Remaining regulatory approvals include the Philippine Competition Commission (PCC).

Newmont president and chief executive Tom Palmer is pleased Australia and Japan have given the green light to proceed.

“Following a thorough review by regulators, we are pleased that the transaction has been given the green light to proceed in Australia and Japan,” he said.

“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.”

In mid-May 2023, Newmont announced its definitive agreement to acquire Newcrest.

Once completed, the acquisition will 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 operations and increased annual copper production primarily from Australia and Canada.

Newmont is continuing to advance other regulatory approvals and expects to close the transaction in the fourth quarter of this year.