The $16.8bn deal is expected to close by the end of this month. Credit: Postmodern Studio/Shutterstock.com.

Newcrest Mining shareholders have approved the company’s proposed $16.8bn (A$26.2bn) takeover by mining giant Newmont.

On 13 October, Newcrest reported that 92.63% of its shareholders had voted in favour of the deal. This was preceded by Newmont’s shareholders overwhelmingly giving the go-ahead to the transaction.

Newmont’s subsidiary Newmont Overseas will acquire Newcrest, with regulatory clearances from competition authorities in Australia, Canada and Papua New Guinea already in place.

The takeover now awaits final confirmation at a Federal Court hearing, which is due next week.

Newmont president and CEO Tom Palmer said: “Recognising the strategic rationale to create the industry’s strongest portfolio of world-class gold and copper assets, Newmont’s shareholders overwhelmingly voted in favour of this transformational transaction.

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“This unrivalled platform, featuring the industry’s best talent running the highest concentration of Tier 1 assets in the most favourable jurisdictions, uniquely positions Newmont to generate superior returns for decades.”

Newcrest interim CEO Sherry Duhe said: “We are excited to present our shareholders with the opportunity to be part of a company that will set a new benchmark in gold production with increased diversification across a premier portfolio of gold and copper assets.

“The transaction is a testament to the success of Newcrest and the quality of our assets. Behind our success is a team of people, whose passion, drive to innovate and commitment to make a positive difference has enabled us to achieve a world-class metals business.”

Earlier this month, Newcrest announced a full franked special dividend of $1.1 per share to it shareholders. The dividend is expected to be paid on 19 October.

The deal is expected to close after Newcrest shareholders receive their consideration of 0.400 Newmont shares for each share held on 30 October this year, at an implied value of A$29.27 per share.

The two companies entered a definitive agreement for the acquisition in May this year.

Newmont said that the deal will position it as a gold mining leader by combining high-quality operations, projects and reserves across low-risk regions.

Complementary businesses of both the companies can create opportunities for optimisation. They would also result in $500m in annual pre-tax synergies, which could be achieved within two years of the acquisition.