Newmont announces $10 billion all-share deal to buy rival Goldcorp
Shares of Goldcorp Inc. GG, +0.52% surged 13% in premarket on Monday after Newmont Mining Corp. NEM, +0.17% said it will buy all outstanding common shares of its rival in a deal valued at $10 billion. Under the terms of the deal, Newmont will acquire each Goldcorp share for 0.3280 of a Newmont share, which represents a 17% premium based on the companies’ 20-day volume weighted average share prices. Goldcorp shares closed at $9.69 on Friday. Gary Goldberg, Newmont’s chief executive officer, said his company expects to generate up to $100 million in annual pre-tax synergies. Shares of Newmont fell 2.7% in premarket trading.
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