Newmont Corporation (NEM) has received regulatory clearance from Australia’s Foreign Investment Review Board (FIRB) and Japan’s Fair Trade Commission (JFTC) for its proposed acquisition of Newcrest Mining Limited. The completion of the transaction is expected to proceed after September 30, 2023, following the JFTC clearance.
Newmont is actively seeking other necessary regulatory approvals and aims to finalize the acquisition in the fourth quarter of this year. The Australian Competition & Consumer Commission has already approved the acquisition, and the remaining pending approval is from the Philippine Competition Commission (PCC). Newmont and Newcrest are also in discussions with the PNG Government and regulators to secure further approvals for the transaction.
Newmont’s President and CEO, Tom Palmer, expressed satisfaction with the regulatory approvals in Australia and Japan. He stated that this acquisition will strengthen Newmont’s operational presence and establish Australia as a significant center for its global business, attracting shareholders from Australia and the Asia Pacific region.
Newmont Corporation Price and Consensus
Image: Newmont Corporation Price and Consensus
The acquisition, announced on May 14, will combine a world-class portfolio of assets, focusing on Tier 1 operations in low-risk mining jurisdictions. The combined entity will have a substantial production profile from ten large, long-life, cost-effective Tier 1 operations, with increased annual copper production primarily from Australia and Canada. The merger is expected to generate annual pre-tax synergies of $500 million within the first 24 months and target at least $2 billion in cash improvements through portfolio optimization in the initial two years post-closure.
Newmont’s shares have fallen 8.6% in the past year compared to the industry’s 17.5% rise during the same period.
Zacks Rank & Key Picks
Newmont currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the basic materials space are Carpenter Technology Corporation (CRS) and Akzo Nobel N.V. (AKZOY), both with a Zacks Rank #1 (Strong Buy), and Alamos Gold Inc. (AGI), carrying a Zacks Rank #2 (Buy).
For more information and stock analysis reports:
– Newmont Corporation (NEM) : Free Stock Analysis Report
– Carpenter Technology Corporation (CRS) : Free Stock Analysis Report
– Akzo Nobel NV (AKZOY) : Free Stock Analysis Report
– Alamos Gold Inc. (AGI) : Free Stock Analysis Report
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