The Korean Government, through the Korea Fair Trade Commission, has issued a letter stating that the proposed merger between Newmont Mining and Goldcorp is not in violation of the Monopoly Regulations and Fair Trade Act.

In January 2019, the two companies announced that they had entered into a definitive agreement in which Newmont acquired all of the outstanding common shares of Goldcorp in a stock-for-stock transaction valued at US$10 billion. Under the terms of the agreement, Newmont would 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.

Earlier this month, the Canadian Competition Bureau issued a “no action” letter clearing the transaction under Canadian competition law. Newmont and Goldcorp continue cooperating with other regulatory agencies to secure the remaining approvals that are conditions to closing.

“We continue making steady progress in securing the necessary approvals to close our transaction with Goldcorp in the second quarter as previously announced,” said Gary Goldberg, Newmont’s Chief Executive Officer. “We also remain focused on systematically advancing our plans to ensure a safe and smooth combination after the shareholder votes in April. Once the transaction is complete, Newmont Goldcorp will be the world’s leading gold company and represent the best path to creating long-term value for our shareholders and other stakeholders without exposing them to unnecessary jurisdictional and other risks.”

The pending combination of Newmont and Goldcorp will feature an unmatched portfolio of world-class operations, projects, reserves, exploration opportunities, and talent. On day one after the transaction closes, expected in the second quarter, Newmont Goldcorp generate an estimated US$75 per ounce in Full Potential cost and efficiency improvements, representing annual anticipated benefits of approximately US$165 million per year.

A further combined US$265 million is expected in annual pre-tax synergies and Full Potential benefits, representing value creation potential of over US$2.5 billion, with a target 6-7 million ounces of steady-state gold production over a decades-long time horizon.


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