VANCOUVER - Denver-based Newmont Mining Corp. and Goldcorp Inc. of Vancouver have agreed to combine their gold companies in a deal worth about US$10 billion.
The companies announced today that Newmont will exchange 0.328 of a share and two cents for each of Goldcorp's outstanding common shares.
The deal has the unanimous support of the directors of both companies but requires regulatory approvals in several countries.
The combined company would be called Newmont Goldcorp and be owned 65 per cent by current Newmont shareholders and 35 per cent by Goldcorp shareholders
Newmont CEO Gary Goldberg says the company expects to generate up to US$100 million in annualized "synergies" before tax and operate in the Americas, Australia and Ghana.
Newmont Goldcorp will also divest between US$1 billion and $1.5 billion of assets over two years to optimize gold production of six to seven million ounces annually.
Goldcorp President and CEO David Garofalo says Newmont Goldcorp will be one of Canada's largest gold producers, with a North American regional office in Vancouver that will oversee more than three million ounces of gold production - about half of the combined company's projected output.
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The Canadian Press