Newmont & Goldcorp Combine to Form the World's Largest Gold Mining Company
Newmont Mining and Goldcorp have agreed to combine their operations and form the world’s largest gold mining company.
Under the terms of the agreement valued at $10 billion Newmont will exchange 0.328 of a share and two cents in cash for each of Goldcorp’s outstanding common shares.
The new company will be known as Newmont Goldcorp with Newmont shareholders having a 65% controlling interest and Goldcorp shareholders the remaining 35%.
“This combination will create the world’s leading gold business with the best assets, people, prospects and value-creation opportunities,” said Gary Goldberg, Newmont’s Chief Executive Officer.
Goldcorp’s President and Chief Executive Officer, David Garofalo said “In addition to the depth and quality of Newmont Goldcorp’s operations, projects, exploration properties and Reserves, the combined company’s assets will be centered in the world’s most favorable and prospective mining jurisdictions and gold districts.
Vancouver will serve as the North American operations head office and oversea mining operations in Canada, the U.S. Mexico and Central America.
The corporate head office will be based in Denver, Colorado.
The Chairperson of Newmont Goldcorp will be Noreen Doyle, with Ian Telfer to serve as Deputy Chairperson. Gary Goldberg will serve as the CEO and Tom Palmer, President and COO. ·
Globally, Newmont Goldcorp has the capacity to produce 6 to 7 million ounces of gold per year.
The Newmont-Goldcorp combination follows the merger of Barrick Gold and Rangold. Many experts like Bloomberg News’ mining reporter Thomas Biesheuvel believe that the Newmont-Goldcorp deal was a response to the Barrick Gold-Rangold merger.
Biesheuvel believes, other mergers are like as the gold mining sectors restructures in the hopes of attracting more investment interest.