Newmont Mining to buy Goldcorp in a $10 billion deal to create the world's largest gold producer
- Newmont Mining plans to buy smaller rival Goldcorp in a $10 billion deal that would create the world's largest gold producer.
- The deal highlights further consolidation in the gold mining space, following the Barrick Gold-Randgold Resources merger.
- Watch Newmont Mining trade here, and watch Goldcorp trade here.
Newmont Mining, the giant Colorado-based gold miner, said Monday it would buy Canadian rival Goldcorp for $10 billion in a stock-for-stock transaction. The deal would create the world's largest gold producer called Newmont Goldcorp.Newmont said it would acquire all of Goldcorp's outstanding common shares, buying each share for 0.3280 of a Newmont share - a 17% premium to Friday's closing price, according to the companies' announcement. The newly formed Newmont Goldcorp shares would look to list on the Toronto Stock Exchange.Advertisement
The combined company would offer a $0.56 a share dividend - the highest annual dividend among senior gold producers, according to a press release.
The deal highlights further consolidation in the gold-producer space. Barrick Gold and Randgold Resources said last year they would merge, and the deal was completed earlier this year.On Monday, shares of Newmont Mining fell about 6% in pre-market trading, while Goldcorp surged nearly 10%. The VanEck Vectors Gold Miners Exchange-Traded Fund was up just under 1% in pre-market trading.
The price of gold has risen 4% in the last three months amid widespread market volatility; the asset is typically considered a safe haven for investors.Now read:
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