Newmont's (NEM) Newcrest Buyout Gets Korea's Approval
Newmont Corporation NEM has received clearance from the Korea Fair Trade Commission (KFTC) for its proposed acquisition of Newcrest Mining Limited. The KFTC stated that the transaction complies with Korea's Monopoly Regulation and Fair Trade Law.
While Newmont awaits other regulatory approvals, it aims to complete the acquisition in the fourth quarter of this year. Notably, Papua New Guinea's Independent Consumer & Competition Commission and the Canadian Competition Bureau have already given their approval, with the latter issuing a "no action" letter in July.
Additional regulatory approvals required for the acquisition include those from the Australian Competition and Consumer Commission, the Australian Foreign Investment Review Board, the Japan Fair Trade Commission and the Philippine Competition Commission. Newmont and Newcrest are also actively engaged with the Papua New Guinea government and regulatory bodies to secure further necessary clearances.
On May 14, Newmont announced a definitive agreement to acquire Newcrest, forming an industry-leading portfolio of assets with the largest concentration of Tier 1 operations in favorable jurisdictions. The merged company will operate 10 major, low-cost and long-life Tier 1 operations, and substantially boost copper production from Australia and Canada. The expected benefits include approximately $500 million in annual pre-tax synergies within the initial 24 months, with an additional $2 billion targeted over the first two years post-acquisition through strategic portfolio optimization.
The union of Newmont and Newcrest delivers an extraordinary value proposition for shareholders and other stakeholders. With the world-class portfolio, Newmont will be well-placed to create strong, consistent and long-term returns while achieving best-in-class sustainability performance in the future.
Newmont Corporation Price and Consensus
Newmont Corporation price-consensus-chart | Newmont Corporation Quote
Zacks Rank & Key Picks
Newmont currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS and PPG Industries, Inc. PPG, both sporting a Zacks Rank #1 (Strong Buy), and L.B. Foster Company FSTR, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The earnings estimate for CRS’s current year is pegged at $3.36, indicating year-over-year growth of 194%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 10%. The company’s shares have rallied 51.8% in the past year.
The Zacks Consensus Estimate for PPG’s current-year earnings has been revised 3.5% upward in the past 60 days. PPG beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.3% on average. The company’s shares have risen roughly 3.1% in the past year.
The consensus estimate for FSTR's current year is pegged at 53 cents, indicating year-over-year growth of 112.5%. FSTR beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 134.5%. The company’s shares have rallied 27.4% in the past year.
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Newmont Corporation (NEM) : Free Stock Analysis Report
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