The agreement between Newmont and Goldcorp will create a portfolio of operations and projects. Credit: Randi Ang.

Newmont Mining has signed a definitive agreement to acquire all of the outstanding common shares of Goldcorp in a deal valued at $10bn.

The agreement will see the combination of two gold industry leaders into a new company called Newmont Goldcorp.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

It is expected to create a portfolio of operations, projects, exploration opportunities, reserves and people in the gold mining sector.

Newmont Mining CEO Gary Goldberg said: “We expect to generate up to $100m in annual pre-tax synergies, with additional cost and efficiency opportunities that will be pursued through our proven Full Potential continuous improvement programme.

“We constantly review opportunities to raise our performance, and this combination represents the most promising path to deliver superior and sustainable value for our shareholders, employees, host countries and communities.”

The reserves and resources of Canada’s Newmont Goldcorp will be located in favourable mining jurisdictions in the Americas, Australia and Ghana. Deposits in the Americas will account for 75% of the company’s reserves, with 15% in Australia and 10% in Ghana.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Over the next couple of years, the company will also target $1bn to $1.5bn in divestitures to optimise gold production at a steady-state level of six to seven million ounces a year.

“This combination represents the most promising path to deliver superior and sustainable value for our shareholders, employees, host countries and communities.”

With its North America regional office in Vancouver, Newmont Goldcorp expects to oversee more than three million ounces of its total gold production every year.

The company’s South America regional office will be in Miami, US; the regional office of Australia will be in Perth; and the Africa regional office will be located in Accra, Ghana.

Shareholders of Newmont and Goldcorp will own about 65% and 35% of the combined entity respectively.

The transaction, which will be implemented by way of a court-approved plan of arrangement under the Ontario Business Corporation Act, is expected to close in the second quarter of this year.

As part of this combination, Newmont Goldcorp plans to make new investments in a reinvigorated exploration programme in Canada and provide ongoing and long-term employment for highly skilled jobs at its properties in the country.