Newmont CEO Tom Palmer
With all regulatory, shareholder and legal approvals secured for the acquisition of Newcrest by Newmont, the transaction is set to close in early November.
The scheme of arrangement under which Newcrest will be bought became legally effective under Australian law this week, following the lodging of the orders of the Federal Court of Australia with the Australian Securities and Investment Commission.
Newcrest’s shareholders last week approved the scheme.
“This milestone represents a pivotal and historic moment in our strategy to create the world’s premier gold and copper company by consolidating tier 1 assets in the world’s most favourable mining jurisdictions,” said Newmont CEO Tom Palmer on Wednesday.
Once complete, the combined business will feature ten tier 1 operations. The combined business is expected to generate pre-tax synergies of $500-million a year, expected to be achieved within the first 24 months, while also targeting at least $2-billion in cash improvements through portfolio optimisation in the first two years after closing.
“We appreciate Newcrest’s and Newmont’s shareholders’ vote of confidence in our value-focused strategy, proven operating model and seasoned management team,” said Palmer.