Newmont Gets Clearance From Canadian Competition Bureau For Acquisition Of Newcrest

(RTTNews) - Gold mining company Newmont Corp. (NEM) announced on Tuesday that the Canadian Competition Bureau has issued a no-action letter under the Canadian competition law for the acquisition of Newcrest. The transaction is expected to close in the fourth quarter.

Previously on May 14, Newmont had announced a definitive agreement to acquire Newcrest Mining Ltd. (NCMGF) as it believes the acquisition would create a world-class portfolio of assets with the highest concentration of Tier 1 operations, mainly in favorable, low-risk mining jurisdictions.

Upon closing of the deal, the combined company is supposed to deliver a multi-decade production profile from 10 large, long-life, low-cost, Tier 1 operations, and increased annual copper production from Australia and Canada.

Newmont said the combined business is expected to generate pre-tax synergies of $500 million to be achieved within the first 24 months while targeting at least two billion in the first two years after closing through portfolio optimization 1.

Newmont expects regulatory approvals in other jurisdictions also.

In pre-market activity, shares of Newmont are trading at $45 up 0.85% or $0.38 on the New York Stock Exchange. Shares of Newcrest closed at $18.75 down 0.58%.