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Newcrest investors strongly approve $17 billion Newmont takeover

Published 10/12/2023, 08:46 PM
Updated 10/12/2023, 11:42 PM
© Reuters.
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By Scott Murdoch

SYDNEY (Reuters) -Newcrest Mining shareholders have voted strongly in favour of accepting the A$26.2 billion ($16.81 billion) buyout bid from global gold mining giant Newmont Corporation, Australia's largest corporate takeover this year.

The company announced on Friday that 92.63% of the votes cast by Newcrest shareholders were in favour of the deal going ahead, exceeding the requirement for at least 75% support.

A Federal Court hearing is due to be held on Tuesday, in the final step for the takeover to be ratified.

On Wednesday, Newmont shareholders meeting in the U.S. voted more than 96% in favour of the world's largest gold producer buying its Australian rival.

The deal is the third-largest ever involving an Australian company, LSEG data showed, and one of the biggest global buyouts in 2023.

Newmont said in May it would offer Newcrest shareholders 0.400 Newmont share for each share held, after Newcrest's board in February rejected an earlier offer of 0.38 Newmont shares.

Newmont is also allowing Newcrest to pay a franked special dividend of up to $1.10 per share on the implementation of the deal, returning tax credits to Australian shareholders.

Newcrest last week said Newmont had received all government regulatory approvals required for the deal to go through, including from Australian Foreign Investment Review Board and competition authorities in Australia, Canada and Papua New Guinea.

© Reuters. FILE PHOTO: A small toy figure and gold imitation are seen in front of the Newmont logo in this illustration taken November 19, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

Mergers and acquisition activity in Australia has fallen 25.7% in the first three quarters of 2023 compared to the same time last year, according to LSEG data.

($1 = 1.5588 Australian dollars)

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