Deal values Canadian miner at U$10 billion
Canada’s Goldcorp is combining with Colorado-based Newmont Mining Corporation to form the world’s leading gold firm.
Newmont is acquiring Goldcorp in an all-stock transaction which values the Canadian firm at around $10 billion. Newmont will acquire each Goldcorp share for 0.3280 of a Newmont share, which represents a 17% premium based on the companies' 20-day volume weighted average share prices.
The new business will be called Newmont Goldcorp, a Delaware corporation headquartered in Colorado.
Preserving Canadian jobs
Goldcorp’s existing Vancouver headquarters will become the new entity’s North America reginal office and the companies say this will preserve Canadian jobs with this office overseeing all of the firm’s properties in Canada and the US.
The South America regional office will be in Miami and there will be regional offices in Australia and South Africa.
The new board of directors will be proportionally comprised of Newmont and Goldcorp Directors, with Newmont’s Noreen Doyle as Chair and Goldcorp’s Ian Telfer as Deputy Chair. It’s management team will be appointed on a "best talent" basis, with Gary Goldberg as Chief Executive Officer and Tom Palmer as President and Chief Operating Officer.
"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. "We have a proven strategy and disciplined implementation plan to realize the full value of the combination, including an exceptional pool of talented mining professionals, stable and profitable gold production of six to seven million ounces over a decades-long time horizon, the sector's largest gold Reserve and Resource base, and a leading project and exploration pipeline.”
Trading expected on NYSE, TSX
Goldberg has agreed to lead the firm through to the closing of the transaction and the integration of the two firms. This is expected to be completed in the fourth quarter of 2019.
Shares of the combined firm will be listed on the New York Stock Exchange under the NME ticker and are also expected to trade on the TSX.
