Newmont Mining to acquire Goldcorp in multi-billion-dollar deal

The USD$10-billion transaction will see both companies merge to form Newmont Goldcorp, which will hold the world's largest share of gold resources and reserves

American gold giant Newmont Mining Corporation announced Monday it will acquire Vancouver-based Goldcorp Inc. in a USD$10-billion stock-for-stock transaction.

When the deal closes, the rebranded Newmont Goldcorp will hold the world’s largest share of gold assets.

"This combination will create the world's leading gold business with the best assets, people, prospects and value-creation opportunities," stated Newmont Mining CEO Gary Goldberg in a news release.

Newmont Goldcorp’s North American regional office will be located in Vancouver and responsible for overseeing the company’s operations in the United States and Canada. These will produce more than three million ounces of gold per year – more than triple Goldcorp’s current Canadian gold production.

The office will also serve as Newmont Goldcorp’s base for certain business areas, including global oversight of indigenous community relations. The company's management team will be determined on a "best talent" basis, according to the release.

The deal values shares in Goldcorp and Newmont at a 17% premium.

Shares in Goldcorp (TSX:G) were up nearly 11% as of Monday morning (7:30 a.m. PST), while shares in Newmont (NYSE: NEM) were down by more than 6%.

The company said it will seek to list shares of Newmont Goldcorp on the Toronto Stock Exchange.