Papua New Guinea’s (PNG) Independent Consumer and Competition Commission (ICCC) has granted clearance for Newmont to proceed with its acquisition of Newcrest.
After a three-month process beginning in February 2023, Newmont secured a $26.2 billion takeover deal with Newcrest.
The Canadian Competition Bureau issued a ‘no action’ letter clearing Newmont’s announced transaction with Newcrest under Canadian competition law in mid-July.
Newmont has since been continuing to advance other regulatory approvals, such as PNG’s, and it expects to close the transaction in the December 2023 quarter.
Newmont still needs regulatory approvals from the Australian Competition and Consumer Commission (ACCC), the Australia Foreign Investment Review Board (FIRB), the Japan Fair Trade Commission (JFTC), the Philippine Competition Commission (PCC), and the Korea Fair Trade Commission (KFTC) to complete its acquisition of Newcrest.
Additionally, Newmont has been in consultation with Newcrest, and through this has determined that a pre-merger notification under the Hart–Scott–Rodino Antitrust Improvements Act of 1976 will not be required in the US for the transaction to proceed.
“We appreciate the ICCC in Papua New Guinea carefully reviewing and clearing our proposed acquisition of Newcrest,” Newmont chief executive officer Tom Palmer said.
“Lihir in PNG is one of the world’s great gold mines and a Tier 1 operation by any measure. In addition to Lihir, we see profitable gold and copper growth through the world-class Wafi-Golpu project.
“We remain committed to building strong, mutually beneficial and long lasting relationships with PNG’s government and local communities. As part of this commitment, Newmont plans to establish PNG as a standalone fifth region in our portfolio with an in-country senior leadership presence and pursue a secondary listing of Newmont depositary interests on the PNG’s National Stock Exchange (PNGX).”
Both miners will continue engaging with the PNG Government and regulators about other approvals and clearances for the takeover.