Following a review by Australia’s Foreign Investment Review Board (FIRB), the Treasurer has cleared Newmont to proceed with its $26.2 billion acquisition of Newcrest.
The FIRB has issued a no objection notification which is conditioned upon compliance with standard tax conditions associated with the Commonwealth’s taxation laws.
Last week, Newmont also received approval from Japan’s Fair Trade Commission (JFTC) to proceed with the acquisition through the JFTC issuing a clearance letter that allows closing of the proposed transaction to proceed any time after September 30.
“Following a thorough review by regulators, we are pleased that the transaction has been given the green light to proceed in Australia and Japan,” Newmont chief executive officer Tom Palmer 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.”
Newmont’s acquisition of Newcrest has already been given approval by the Canadian Competition Bureau in July, Papua New Guinea’s (PNG) Independent Consumer and Competition Commission, the Korea Fair Trade Commission and the Australian Competition and Consumer Commission in August.
Newmont will continue to advance other regulatory approvals, such as the Philippine Competition Commission.
Newmont, along with Newcrest, will also continue to engage with the PNG Government and regulators about other approvals and clearances needed for the transaction to proceed.
It is expected for the transaction to be completed in the fourth quarter of 2023.
The transaction is expected to deliver a multi-decade production profile from ten large, long-life, low cost, Tier 1 operations, as well as increased annual copper production primarily from Australia and Canada.
It is also anticipated to generate annual pre-tax synergies of $500 million within the first two years, while simultaneously targeting at least $2 billion in cash improvements through portfolio optimisation.