Newmont Got Regulatory Nod for Newcrest Takeover Deal

SEATTLE (Scrap Monster): Newmont Corporation announced that it has received clearance from Australia’s competition regulator on the proposed takeover of Newcrest Mining, aimed at creating the world’s biggest gold producer.

The Australian Competition and Consumer Commission (ACCC) has assessed the transaction and considers that a public review is not required, said a spokesperson for the regulator. Meantime, Newmont noted that it is progressing on other necessary regulatory approvals and that it expects to close the transaction by Q4 this year.

The pending approvals include those from Australia’s Foreign Investment Review Board (FIRB) as well as regulatory approvals from Japan, the Philippines and Papua New Guinea (PNG).

Newmont had first approached Newcrest with a $17 billion acquisition offer that was rejected by Newcrest’s board. The bid amount was later revised to $19.5 billion in April, saying it as the best and final offer. The Board approved this proposal and recommended it to shareholders for their approval.

Apart from opening doors to gold assets in North and South America, Africa, Australia and Papua New Guinea, the deal will also expand Newmont’s exposure to copper. It must be noted that copper accounts for almost one-fourth of Newcrest’s revenues.