Largest goldminer merger approved by shareholders

The largest goldmining acquisition in history has been approved by takeover target Newcrest’s shareholders under the $26 billion merger with Newmont.

The results from Friday's shareholders meeting revealed 92.63 per cent of Newcrest's shareholders voted in favour of the scheme while 7.37 per cent voted against the merger.

Under the deal, Newcrest shareholders will receive 0.400 Newmont shares for each Newcrest share held and the miner also expects to pay a franked special dividend of $US1.10 per Newcrest share.

The merger hinges on Federal Court approval, after which Newcrest expects the scheme to be implemented on November 6. 

Prior to casting shareholder votes, Newcrest chairman Peter Tomsett fielded several questions over the directors’ decision to unanimously recommend the scheme. 

When asked why Newcrest didn’t want to retain full ownership of its Australian assets, Mr Tomsett said the company would have “loved to” but they received an offer they couldn’t resist. 

He said it was a sad day for the company but ultimately in the best interests of shareholders. 

“It's interesting that [question] about pride in Australian independence, ownership and resources. It’s a thing that we'd love to have, and we've loved being an Australian champion of the gold industry,” Mr Tomsett said.

“But at the end of the day we have to do what's in the best interest of shareholders and while we would have loved to continue on, and we had a great strategy and a great team in place to take this company forward, the reality is that we were made an offer by Newmont that we basically couldn't resist. 

“It's a sad day for us, but it's a good outcome for the company and the shareholders.”

Two Newcrest directors will join the merged company’s board, with the remaining directors to resign or retire.

The shareholder nod comes after months of negotiations during which the terms of the transaction were improved by Newmont on three occasions, according to Newcrest. 

Newcrest operates the Cadia goldmine in NSW, the Telfer mine in Western Australia, and mines in Papua New Guinea and Canada.

Newmont owns goldmines in North and South America, Ghana, the Tanami mine in the Northern Territory and the Boddington goldmine in WA, which is one of Australia's biggest.