Newmont receives clearance from KFTC for Newcrest acquisition

Newmont has received clearance from the Korea Fair Trade Commission (KFTC) to proceed with its proposed acquisition of Newcrest Mining (ASX:NCM).

Earlier this month, Papua New Guinea’s Independent Consumer and Competition Commission cleared the proposed acquisition while the Canadian Competition Bureau issued a “no action” letter in July clearing the transaction.

Other regulatory approvals to be secured include the Australian Competition and Consumer Commission, the Australia Foreign Investment Review Board, the Japan Fair Trade Commission and the Philippine Competition Commission.

Additionally, Newmont and Newcrest are continuing engaging with the Papua New Guinea Government and regulators regarding other approvals and clearances for the transaction.

The companies expect to complete the transaction in the fourth quarter of this year.

In mid-May 2023, Newmont entered a definitive feasibility agreement to acquire Newcrest by way of an Australian Scheme of Arrangement.

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.

At the time, Newcrest chairman Peter Tomsett said the sale would bring significant value to shareholders.

“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,” he said.

“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.”