Australia gives clearance for gold miner Newmont’s $16.8 billion Newcrest Acquisition
- August 22, 2023
- Posted by: Quatro Strategies
- Categories: Asia Pacific, Mining & Metals, Sanctions & Regulation
Gold mining company Newmont Corp has received clearance from the Australian Competition and Consumer Commission (ACCC) to proceed with its proposed A$26.2 billion ($16.80 billion) takeover of Newcrest Mining. Under the deal, Newcrest shareholders would receive 0.400 Newmont shares for each share they own, implying a value of A$29.27 per share.
Newcrest Mining had previously expressed its support for the takeover offer, making it one of the largest deals ever involving an Australian company.
The Australian Competition and Consumer Commission (ACCC) reviewed the transaction and determined that a public review was not necessary. However, Newmont’s takeover still requires approval from other regulatory bodies, including Australia’s Foreign Investment Review Board (FIRB), as well as regulators in Japan, the Philippines, and Papua New Guinea.
The deal reflects the ongoing activity and consolidation within the gold mining industry. Newmont’s move to acquire Newcrest Mining aligns with the company’s strategic efforts to expand its portfolio and enhance its position in the market.
The completion of the deal would depend on receiving the necessary regulatory approvals and fulfilling any other conditions set forth in the agreement.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
OPEC+ extends oil output cuts into second quarter to support market
OPEC+ members, led by Saudi Arabia and Russia, have agreed to extend voluntary oil output cuts of 2.2 million barrels per day (bpd) into the second quarter of the year. This decision aims to provide additional support to the oil market amid concerns about global economic growth and increasing…
EU manufacturers face shutdowns amid rare earth bottlenecks
European manufacturers are bracing for further production stoppages and mounting losses as China continues to throttle exports of rare earths and related components, despite a July pledge to ease shipments to the European Union. The European Union Chamber of Commerce in China warned on Tuesday that Beijing’s licensing regime remains a major bottleneck for critical materials, undermining a fragile truce struck at the high-level EU–China summit in late July.
Jens Eskelund, the chamber’s president, said the promised fast-tracking of export licences has not materialized. Of the roughly 140 export licence applications the chamber has tracked, fewer than a quarter have been approved, he said. Several firms are now filing applications months in advance to avoid catastrophic production delays, yet many are still suffering losses from disrupted supply chains.
Gulf supply shock gives China’s aluminium exporters new momentum
China’s aluminium exporters are benefiting from a classic wartime trade realignment: when a key producing region is disrupted, buyers scramble for the nearest large-scale alternative, and China is by far the biggest one. The conflict in and around Iran has impaired supply from the Gulf, a region that accounts for roughly 9% of global aluminium output, while premiums in overseas markets have widened sharply relative to Chinese prices.
That has created a strong incentive for foreign buyers to source more semi-finished aluminium products from China just as domestic inventories have climbed to their highest level in six years.