Done deal: Newmont Goldcorp becomes world’s No. 1 gold miner
Newmont Mining’s $10 billion acquisition of Canada’s Goldcorp closed Thursday, giving rise to Newmont Goldcorp Corporation (NYSE: NEM)(TSX: NGT), the world’s largest gold producer by market value, output and reserves.
The mammoth company, to be led by Gary Goldberg until the end of the year, will mine in the Americas, Australia and Ghana, producing between 6 and 7 million ounces of gold annually over the next ten years and beyond.
A key reason for the business combination was the synergies and cost-savings the merged company could achieve. Newmont Goldcorp expects to immediately start delivering on an estimated $365 million in expected annual pre-tax synergies, supply chain efficiencies and other improvements. This is expected to include the sale of $1 billion to $1.5 billion of assets over the next two years.
“We’ve met our goal to become the world’s leading gold business, and we’ll maintain that position by executing our winning strategy. That strategy focuses on constantly improving safety and efficiency at our current operations while we continue to invest in expansions and exploration to fuel next generation production,” said Goldberg, who is retiring by the end of the year.
Former Newmont chief operating officer, Tom Palmer, will then take over as CEO of the new company, which is based in Vancouver, British Columbia.
The company will continue trading on the New York Stock Exchange (NYSE) under the ticker NEM and will begin trading on the Toronto Stock Exchange (TSX) under the ticker NGT. Goldcorp’s shares will be delisted from the NYSE before market open on April 18 and from the TSX after market close on April 22.
The assets Newmont Goldcorp are anticipated to put on the chopping block, combined with mines Barrick plans to sell in the wake of its acquisition of Randgold Resources earlier this year, is expected by analysts to fuel further sector deals.