Newmont clears regulatory hurdle for Newcrest deal, awaits shareholder vote

Small toy figure and gold imitation are seen in front of the Newmont logo in this illustration

(Reuters) -Gold miner Newmont Corp said on Monday it has received a clearance from Australia’s Foreign Investment Review Board to proceed with its proposed A$26.2 billion ($16.86 billion) takeover of Australia’s Newcrest Mining.

The world’s largest gold producer had in August received a clearance from Australia’s competition regulator.

Newmont also received a clearance from Japan’s Fair Trade Commission last week, allowing the transaction to be closed anytime post September-end.

“Newmont continues advancing other regulatory approvals and expects to close the transaction in the fourth quarter of this year,” the company said in a statement on Monday.

If the deal goes through, Newcrest shareholders would receive 0.400 Newmont share for each share, with an implied value of A$29.27 a share.

The deal still awaits the crucial Newcrest shareholder vote, scheduled for Oct. 13, as well as nods from regulators in the Philippines and Papua New Guinea.

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Australia’s largest gold miner, Newcrest, had in May backed the takeover offer from Newmont, in what would be the third-largest deal ever involving an Australian company.

Newcrest did not immediately respond to Reuters’ request for a comment.

($1 = 1.5540 Australian dollars)

(Reporting by Rishav Chatterjee in Bengaluru; Editing by Shilpi Majumdar)

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