Gold major Newcrest Mining on Friday said that the proposed takeover by US major Newmont Corporation was one step closer after all government regulatory approvals were obtained.
The government approvals were conditions precedent to the binding scheme implementation deed under which Newcrest shareholders would receive 0.4 Newmont shares for each Newcrest share held, with Newcrest additionally permitted to pay a fully franked special pre-completion dividend of up to $1.10 a share.
The approvals were from the Australian Foreign Investment Review Board, as well as competition authorities in Australia, Canada and Papua New Guinea.
The scheme remains subject to Newcrest shareholder, Newmont stockholder and court approvals, as well as other customary conditions.
At the completion of the transaction, Newcrest shareholders would hold a 31% interest in the combined group, which is expected to create an industry-leading portfolio with multi-decade gold and copper production.
Newmont is one of the world’s largest gold producers, and also produces copper, silver, zinc and lead. The company holds assets in both North and South America, Australia and Africa, and is the only gold producer listed in the S&P 500 Index. In the third quarter of 2022, Newmont produced 1.49-million attributable ounces of gold and 299 000 attributed gold equivalent ounces from co-products.
Newcrest, in turn, owns a portfolio of predominantly low-cost, long-life mines in Australia, Canada and Lihir. In the December quarter, Newcrest produced 512 000 oz and 35 000 t of copper at an all-in sustaining cost of $1 082/oz.
