Gold mining giant, Newmont Corp, announced on Monday that it has obtained the necessary clearance from the Australian competition authority to move forward with its intended A$26.2 billion ($16.80 billion) purchase of Newcrest Mining (OTC:NCMGF).
Should the acquisition materialize, Newcrest stockholders would be entitled to 0.400 shares of Newmont for every share they own, translating to a valuation of A$29.27 per share.
Earlier in mid-May, Newcrest expressed its support for the takeover bid, positioning it as the third-largest transaction involving an Australian entity.
An official from the Australian Competition and Consumer Commission (ACCC) stated to Reuters that the deal was examined and deemed not to require a public review.
While Newmont is on track in seeking other essential regulatory green lights, the firm anticipates finalizing the merger by the end of this year’s fourth quarter.
This acquisition is still awaiting endorsements from the Australian Foreign Investment Review Board (FIRB), as well as regulatory bodies in Japan, the Philippines, and Papua New Guinea.
When reached out for a statement, Newcrest did not promptly reply to Reuters.
(Note: Current exchange rate stands at $1 to 1.5596 Australian dollars.)