The Wall Street Journal: Newmont announces deal to buy Goldcorp for $10 billion

Newmont Mining Corp. NEM, +0.17%   agreed to buy rival Canadian gold producer Goldcorp Inc G, +0.63%   in an all-stock transaction the companies valued at $10 billion, intensifying a consolidation wave among global miners as they compete for a dwindling supply of easy-to-find gold.

The move comes on the heels of another mining blockbuster: Canada’s Barrick Gold Corp. agreed to buy Randgold Resources Ltd. for $6 billion in an all-share merger last September.

The depletion of global gold mines, and the resulting increase in extraction costs, has pushed gold miners to seek cost efficiencies, and smaller-scale combinations, as they compete to find and exploit the world’s remaining high-grade deposits.

Newmont said it would acquire each Goldcorp share for 0.3280 of their own stock, which represents a 17% premium to the Canadian company’s 20-day volume weighted average share prices.

An expanded version of this article appears at WSJ.com

Popular in WSJ.com

White House sought options to strike Iran

Wall impasse frustrates many newly elected House Democrats

Want news about Europe delivered to your inbox? Subscribe to MarketWatch’s free Europe Daily newsletter. Sign up here.

Filed in: Top News Tags: 

You might like:

Key Words: Disney heiress ‘livid’ after speaking with workers from her family’s theme parks Key Words: Disney heiress ‘livid’ after speaking with workers from her family’s theme parks
Hasbro’s Nerf and Play-Doh were big sellers on Amazon Prime Day Hasbro’s Nerf and Play-Doh were big sellers on Amazon Prime Day
Disney earnings could nearly double by 2024, Morgan Stanley says Disney earnings could nearly double by 2024, Morgan Stanley says
Commodities Corner: U.S crude supplies poised to post longest stretch of weekly declines in 18 months Commodities Corner: U.S crude supplies poised to post longest stretch of weekly declines in 18 months
Upgrade: Millions of older Americans may be using this over-the-counter medication wrong Upgrade: Millions of older Americans may be using this over-the-counter medication wrong
Despite Trump jawboning, King Dollar continues to weigh on U.S. companies Despite Trump jawboning, King Dollar continues to weigh on U.S. companies
Capitol Report: More than 3 million people would lose food stamps under Trump proposal Capitol Report: More than 3 million people would lose food stamps under Trump proposal
Cannabis Watch: Curaleaf shares tumble 8% after FDA warning letter over CBD health claims Cannabis Watch: Curaleaf shares tumble 8% after FDA warning letter over CBD health claims

Leave a Reply

Submit Comment
© 2019 Stock Investors News. All rights reserved. XHTML / CSS Valid.