Newmont gets FIRB approval to buy gold miner Newcrest

The news: Global miner Newmont has moved a step closer to completing its acquisition of Australia’s top gold miner Newcrest after receiving clearance from the Foreign Investment Review Board (FIRB).

The numbers: Newmont finalised its $26 billion deal to take over its Australian rival in May. The combined business is expected to generate annual pre-tax synergies of USD500 million within the first 24 months, and is also targeting at least USD2 billion in cash improvements through portfolio optimisation in the first two years.

The context: Newmont earlier received the green light from competition regulator ACCC. It is now awaiting regulatory clearances for the deal from the Philippines and Papua New Guinea. Local investors will vote on the deal on 13 October with the two companies expecting to close the transaction in the fourth quarter of this year.