Newsletter

Menu

Newmont to acquire Goldcorp for $10 billion to create gold mining giant

By Staff Correspondent |

Newmont Mining Corporation (NEM) agreed to acquire Goldcorp Inc. (GG) for $10 billion in an all-stock deal, which is expected to be completed in the second quarter of 2019. Under the terms, Newmont will acquire all outstanding Goldcorp equity at an exchange ratio of 0.3280 of a Newmont share and $0.02 for each Goldcorp share, which will represent a 17% premium based on both companies’ 20-day volume weighted average share prices as of January 11, 2019.

The transaction has been approved by the boards of directors of both companies. Closure of the deal is subject to approval by the shareholders of both companies, regulatory approvals in a number of jurisdictions including the EU and Canada, and other customary conditions.

The combined entity will be named Newmont Goldcorp and will be one of the world’s largest gold producers by output. Newmont shareholders will own approx. 65% of the combined company while Goldcorp shareholders will own 35%.

The majority of Newmont Goldcorp’s reserves and resources, around 75%, will be located in the Americas with the remaining 15% in Australia and 10% in Ghana. Newmont Goldcorp plans to divest $1 billion to $1.5 billion in assets over the next two years, and aims to achieve an annual production target of 6-7 million ounces. In 2017, Newmont produced 5.3 million ounces of gold while Goldcorp produced 2.6 million ounces.

Chinese giant Zijin Mining buys rest of Nevsun Resources

Gary Goldberg will be the Chief Executive Officer of Newmont Goldcorp and Tom Palmer will be the President and Chief Operating Officer. Mr. Goldberg will lead the company through the acquisition and integration process, which is expected to be completed for the most part in the fourth quarter of 2019, after which he will retire and Mr. Palmer will become President and CEO.

Newmont Goldcorp’s shares will be traded on the New York Stock Exchange under the ticker symbol NEM and are expected to be listed on the Toronto Stock Exchange following the deal closure. Newmont would be entitled to a $350 million break-fee and Goldcorp would be entitled to a $650 million break-fee, depending on the circumstances.

Newmont’s stock was down 4.5% in morning trade on Monday while Goldcorp’s shares were up 11.5%.

 

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips.

Advertisement

More on this Company

Symantec shares soar on Broadcom acquisition reports

July 3, 2019

Applied Materials to take over Kokusai Electric for $2.2 billion

July 1, 2019

Pharma stocks: Merck is on a buying spree

June 18, 2019

205 responses to “Newmont to acquire Goldcorp for $10 billion to create gold mining giant”

  28. Fiverr Earn

    […]Wonderful story, reckoned we could combine a handful of unrelated data, nevertheless truly worth taking a search, whoa did one particular study about Mid East has got much more problerms at the same time […]

  45. aussie doodle

    […]Wonderful story, reckoned we could combine a few unrelated information, nonetheless seriously worth taking a search, whoa did one master about Mid East has got far more problerms as well […]

  79. Streamer

    […]Wonderful story, reckoned we could combine a couple of unrelated information, nevertheless actually really worth taking a appear, whoa did one particular study about Mid East has got a lot more problerms too […]

  112. live sex cams

    […]Wonderful story, reckoned we could combine some unrelated information, nonetheless truly really worth taking a search, whoa did one particular master about Mid East has got additional problerms also […]

  121. หวย24

    […]we like to honor lots of other net web pages on the web, even though they aren’t linked to us, by linking to them. Underneath are some webpages really worth checking out[…]

Leave a Reply

Top