Newmont Buying Goldcorp

mergers and acquisitions

CBJ — Newmont Mining has signed an agreement to acquire Canadian miner Goldcorp in a deal it valued at about US$10 billion.

The combined company will be called Newmont Goldcorp and will be owned 65% by current Newmont shareholders and 35% by Goldcorp shareholders

The agreement follows the recently completed merger of Barrick Gold and Randgold Resources.

Goldcorp president and CEO David Garofalo said Newmont Goldcorp will be one of Canada’s largest gold producers, with a North American regional office in Vancouver that will oversee more than 3 million ounces of gold production.

The companies said Goldcorp’s Vancouver headquarters will also be the base for some of its global functions, including oversight of Indigenous community relations.

The deal has the unanimous support of the directors of both companies, but requires approval by shareholders of both companies as well as regulatory approvals in several countries.

Newmont CEO Gary Goldberg will lead the combined company and Newmont president and chief operating officer Tom Palmer is also expected to remain in the same role.

Newmont chairwoman Noreen Doyle will head the board of the combined company, while Goldcorp chairman Ian Telfer will be deputy chairman.