Newmont Mining to buy Goldcorp in huge gold merger

Newmont grabs Goldcorp in $10B deal that creates world's top gold miner

Newmont grabs Goldcorp in $10B deal that creates world's top gold miner

Newmont Mining Corp said on Monday that it would buy smaller rival Goldcorp Inc in a deal valued at $10 billion, creating the world's biggest gold producer by output.

The combined company, which will be called Newmont Goldcorp, will mine in the Americas, Australia and Ghana, producing between 6 and 7 million ounces of gold annually over the next ten years and beyond, the parties said. Goldcorp said Monday it produced 2.3 million ounces past year, while Newmont has forecasted between 4.9 million and 5.2 million ounces for 2018. It has also promised initial cost savings of $100 million a year.

The combined company would offer a $0.56 a share dividend - the highest annual dividend among senior gold producers, according to a press release.

He noted the Vancouver office will manage more ounces of gold production and oversee a workforce of more than 10,000, as well as Indigenous community relations and renewed exploration. Tom Palmer, the company's current chief operating officer, will then take over as the CEO.

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The emphasis on a sustained Canadian presence comes after Barrick Gold has been criticized for a hollowing-out of its Canadian footprint following the deal with London-listed Randgold. But Barrick Gold recently broke the mold by announcing a no-premium acquisition of Randgold, which was welcomed by shareholders as a sensible solution in a hard market. Barrick Gold and Randgold Resources said last year they would merge, and the deal was completed earlier this year.

The merger is scheduled to close in the second quarter.

Goldcorp's US -listed shares were up 13 percent before the bell on Monday.

Goldberg said the company expects to generate up to $100 million U.S. in annualized "synergies" before tax and operate in the Americas, Australia and Ghana.

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