gold
Feature image credit: Wikimedia

NYSE-listed Newmont Mining Corporation and NYSE/TSX-listed Goldcorp Inc. have, through the Korea Fair Trade Commission, received a letter stating that the proposed combination of the two companies is not in violation of Article 7 (1) (Restriction on Business Combination) of the Monopoly Regulations and Fair Trade Act, thereby clearing the previously announced transaction to proceed.

Earlier this month, the Canadian Competition Bureau issued a “no action” letter clearing the transaction under Canadian competition law. 

Newmont and Goldcorp continue cooperating with other regulatory agencies to secure the remaining approvals that are conditions to closing.

“We continue making steady progress in securing the necessary approvals to close our transaction with Goldcorp in the second quarter as previously announced,” says Gary Goldberg, Newmont’s CEO.

“We also remain focused on systematically advancing our plans to ensure a safe and smooth combination after the shareholder votes in April. Once the transaction is complete, Newmont Goldcorp will be the world’s leading gold company and represent the best path to creating long-term value for our shareholders and other stakeholders without exposing them to unnecessary jurisdictional and other risks.”

The pending combination of Newmont and Goldcorp will feature an unmatched portfolio of world-class operations, projects, Reserves, exploration opportunities, and talent.

On day one after the transaction closes, expected in the second quarter, Newmont Goldcorp will:

  • Be immediately value-accretive to Newmont’s Net Asset Value and cash flow per share;
  • Generate an estimated $75 per ounce in Full Potential cost and efficiency improvements, representing annual anticipated benefits of approximately $165 million per year;
  • Create a combined $265 million in expected annual pre-tax synergies and Full Potential benefits, representing value creation potential of over $2.5 billion;
  • Target 6-7 million ounces of steady-state gold production over a decades-long time horizon;
  • Have the largest gold Reserves and Resources in the gold sector, including on a per share basis;
  • Be located in favorable mining jurisdictions and prolific gold districts on four continents;
  • Deliver the highest dividend among senior gold producers;
  • Offer financial flexibility and an investment-grade balance sheet to advance the most promising projects generating a targeted Internal Rate of Return of at least 15 percent;(
  • Feature a deep bench of accomplished business leaders and high-performing technical teams and other talent with extensive mining industry experience; and
  • Maintain industry leadership in environmental, social and governance performance.