Newmont Secures Clearances From Australia's FIRB, Japan's FTC To Acquire Newcrest

(RTTNews) - Newmont Corp. (NEM), a mining company, Monday announced that Australia's Foreign Investment Review Board or FIRB has cleared the company to proceed with the acquisition of Newcrest Mining Ltd. (NCMGY.PK) by issuing a no objection notification or NON.

In the prior week, Japan's Fair Trade Commission or JFTC had cleared the proposed acquisition to proceed anytime post-September 30 by issuing a clearance letter.

In a previous announcement, the company had announced its intention to acquire Newcrest. The firm believes that the transaction would create a world-class portfolio of assets with the highest concentration of Tier 1 operations, primarily in favorable, low-risk mining jurisdictions.

"Upon closing of the transaction, the combined company would deliver a multi-decade production profile from 10 large, long-life, low-cost, Tier 1 operations, and increased annual copper production primarily from Australia and Canada. The combined business is anticipated to generate annual pre-tax synergies of $500 million, expected to be achieved within the first 24 months, while also targeting at least $2 billion in cash improvements through portfolio optimization in the first two years after closing," the company said.

In pre-market activity, shares of Newmont are trading at $40.40 up 0.17% on the New York Stock Exchange and shares of Newcrest closed at 26.27 AUD up 0.57% on the Australian stock exchange.