Newmont to Acquire Goldcorp for $10 Billion

January 14, 2019

Cleary Gottlieb is representing BMO Capital Markets Corp., Citigroup Global Markets Inc., and Goldman Sachs & Co. LLC as financial advisors to Newmont Mining Corp. (Newmont), an American gold and copper producer, in its acquisition of the outstanding common shares of Goldcorp Inc. (Goldcorp), a Canadian gold producer, in a stock-for-stock transaction valued at $10 billion.

The transaction was announced on January 14, 2019, and the combination will create an unmatched portfolio of operations, projects, exploration opportunities, reserves, and people in the gold-mining sector.

Under the terms of the agreement, Newmont will acquire all outstanding Goldcorp equity pursuant to a plan of arrangement under Canadian law in which holders of Goldcorp common shares will be entitled to receive 0.3280 of a Newmont common share and $0.02 for each Goldcorp common share they own. The value of the consideration represents a 17 percent premium based on Newmont’s and Goldcorp’s 20-day volume-weighted average share prices prior to the announcement.

The transaction was unanimously approved by the boards of directors of both companies and is expected to close in the second quarter of 2019, subject to receipt of applicable approvals and satisfaction of other customary closing conditions. See the full press release here.