U.S.-based Newmont said that the Canadian Competition Bureau issued a “no action” letter clearing its previously announced acquisition of Newcrest Mining under Canadian competition law as the miner progresses toward receiving regulatory approvals in other jurisdictions for a fourth-quarter closing.
On May 14, Newmont announced a definitive agreement to acquire Newcrest for $17.4 billion. The deal creates a world-class portfolio of assets with the highest concentration of Tier 1 operations, primarily in favorable, low-risk mining jurisdictions.
Upon closing, the newly combined company will deliver a multi-decade production profile from 10 low-cost, Tier 1 operations and increased annual copper production primarily from Australia and Canada.
Newmont said the combined business should generate annual pre-tax synergies of $500 million within the first 24 months, while also targeting at least $2 billion in the first two years after closing through portfolio optimization.
Newcrest’s assets include the Cadia gold-copper operation in New South Wales, Australia; Brucejack gold-silver and Red Chris gold-copper mines in British Columbia, Canada; Lihir gold mine in Papua New Guinea; and the Telfer gold-copper mine in Western Australia.