Newmont ‘s $10bn Goldcorp deal creating largest goldminer

 

Newmont Mining is to acquire Canada’s Goldcorp in a $10bn deal creating world’s biggest gold miner. The US listed group is offering 0.3280 of its shares plus 2 cents in cash for each Goldcorp share, an 18 per cent premium to Friday’s closing price. The deal including debt values Goldcorp at $12.5bn and will create a combined group with a market value of $30bn.

Newmont’s deals follows closely after Barrick Gold’s takeover of Randgold Resources for $6bn as the gold price trade close to a six month high of about $1300 per ounce.

Gary Goldberg Newmont’s CEO said “ This combination will create the world’s leading gold business with the best assets, people and prospects and value creation opportunities.” The combined company will be 65 per cent owned by Newmont shareholders will target an annual production of  7m ounces over the next decade. Goldcorp’s assets include Cero Negro mine in Argentina , the Penasquito mine in Mexico and its 40 per cent interest in pueblo Viejo mine in the Dominican Republic.