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Newmont offers Goldcorp

Scorpio

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Newmont to buy Goldcorp in $10 billion deal


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FILE PHOTO: The portal is seen at Goldcorp Inc's Borden all-electric underground gold mine near Chapleau, Ontario, Canada, June 13, 2018. REUTERS/Chris Wattie
(Reuters) - Gold miner Newmont Mining Corp (NEM.N) said on Monday that it would buy smaller rival Goldcorp Inc (G.TO) (GG.N) in a deal valued at $10 billion.


Newmont will offer 0.3280 of its share and $0.02 for each Goldcorp share.


“The strategic rationale for combining Goldcorp with Newmont is powerfully compelling on many levels..” Goldcorp Chief Executive Officer David Garofalo said in a statement.

The combined company’s reserves and resources will represent the largest in the gold sector and will be located in favorable mining jurisdictions in the Americas, Australia and Ghana, the companies said.

Goldcorp’s New York- listed shares were up 1.3 percent in before the bell trading on Monday.

Reporting by John Benny in Bengaluru; Editing by Shailesh Kuber
Our Standards:The Thomson Reuters Trust Principles.

https://www.reuters.com/article/us-...gn=Feed:+reuters/businessNews+(Business+News)
 

Scorpio

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works out to 11.46 per share GG currently,

premium to GG from current of 9.69

smart move by New to try to take it over at a low point in stock price,
not good for GG holders
 

Krag

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I had a lot of shares of Ventana gold when it was bought out in a price jump, hard to know when that's going to happen.
 

ZZZZZ

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This "should" be yuuuuuuuuge for the entire mining sector.

"Should" spark a whole round of consolidation and takeovers.

Let's see how it plays out.

Who's the next target?

I'd guess Yamana and Osisko merge.
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..
 

Goldhedge

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Would this be what Sinclair said 10 years ago... that the big boys would be buying up the explorers...?
 

anywoundedduck

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I owned Goldcorp a couple of times over the years Seems we always got shortchanged when it came to acquisitions or takeovers. Finally got pissed off and sold it, after the last takeover, or was it the one before?
 

davycoppitt

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I hold a nice position in GG and actually welcome this deal. GG management seems to be slipping as the years pass by.
 

spinalcracker

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I think Newmont hit the motherload in their mine in Victor Colorado which they purchased from Anglo Ashanti about 3 years ago and are sitting on a lot of money.
So they went shopping.
 

jelly

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Looks to me like these super-sized mergers and aquisitions are proof that the gold market is dead. No money to be made here. Only one way to keep the gold supply going forward - higher gold prices. If we don't get higher prices, supply isn't going to make it to the market over the next couple decades. Unless they can liquidate the gold ETF's to make up for it. :lashing:
 

ZZZZZ

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Looks to me like these super-sized mergers and aquisitions are proof that the gold market is dead. No money to be made here. Only one way to keep the gold supply going forward - higher gold prices. If we don't get higher prices, supply isn't going to make it to the market over the next couple decades. Unless they can liquidate the gold ETF's to make up for it. :lashing:

A great contrarian buy signal.

To borrow the phrase: "Gold is dead. Long live gold!"
.
.
 

jelly

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A great contrarian buy signal.

To borrow the phrase: "Gold is dead. Long live gold!"
.
.

There's definitely room for the share prices to go lower, but I say this from a business perspective. From a business standpoint, I would compare these large mergers to cannibalism. There's nothing for the big guys to eat, so they just eat themselves. This isn't a healthy market, IMHO.
I think long term, there is going to be a price to pay in reduced supply.