U.S. gold producer Newmont Mining is nearing to purchase Canadian peer Goldcorp in $10 billion deal, expected to close this week as it has received Investment Canada Act approval.
The combined company, to be called Newmont Goldcorp, 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.
Last week, almost 98 percent of Newmont’s shareholders approved the move, which forms the world’s largest gold producer by market value, output and reserves. Earlier this month, Goldcorp’s investors also gave the deal a go ahead.
As part of the acquisition, Newmont has committed to sell between $1 billion and $1.5 billion worth of assets over the next two years and It expects initial cost savings of $100 million a year.