Newmont To Buy Goldcorp In $10 Bln Stock-for-stock Deal - Quick Facts

(RTTNews) - Newmont Mining Corp. (NEM) announced Monday that it has entered into a definitive agreement to acquire Goldcorp Inc. (GG, G.TO) in a stock-for-stock transaction valued at $10 billion.

In pre-market activity on the NYSE, Goldcorp shares were gaining around 13.5 percent at $11.

Under the deal terms, Newmont will acquire each Goldcorp share for 0.3280 of a Newmont share, which represents a 17 percent premium based on the companies' 20-day volume weighted average share prices.

Newmont and Goldcorp shareholders will own approximately 65 percent and 35 percent of the combined entity, respectively.

Following the acquisition, Newmont Goldcorp's Reserves and Resources will represent the largest in the gold sector, the company noted.

Newmont Goldcorp will also prioritize project development by returns and risk, while targeting $1.0 to 1.5 billion in divestitures over the next two years.

"This combination creates the world's premier gold company," said Goldcorp's President and Chief Executive Officer, David Garofalo.

Newmont Goldcorp will be one of Canada's largest gold producers and will have its North America regional office in Vancouver, and expects to oversee more than three million ounces of the combined company's total annual gold production.

Newmont's Chief Executive Officer Gary Goldberg will be Newmont Goldcorp's CEO. Tom Palmer will be President and Chief Operating Officer.

Under certain circumstances, Newmont would be entitled to a $350 million break-fee and Goldcorp would be entitled to a $650 million break-fee.

The Boards of Directors of both companies have unanimously approved the transaction, which is expected to close in the second quarter of 2019.

Closing of the deal is subject to approval by the shareholders of both companies, regulatory approvals in the European Union, Canada, South Korea and Mexico; and other customary closing conditions.