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Goldcorp owners approve Newmont merger

An overwhelming majority of Goldcorp owners on Thursday voted in favour of the proposed US$10 billion acquisition of the company by Newmont Mining.
Goldcorp owners approve Newmont merger Goldcorp owners approve Newmont merger Goldcorp owners approve Newmont merger Goldcorp owners approve Newmont merger Goldcorp owners approve Newmont merger

Goldcorp owners have approved the proposed Newmont merger

Staff Reporter

Goldcorp said 97% of shareholders voted in favour of the deal during a special meeting in Vancouver.

The success of the deal now lies with Newmont shareholders who will cast their votes at a meeting next week. Shareholders will be asked to vote on issuing common shares as payment for the mostly-scrip transaction, that will see Goldcorp shareholders receive 0.328 Newmont shares for each Goldcorp share held, plus US2c.

Shareholder advisory groups Glass, Lewis & Co and Institutional Shareholder Services have previously recommended investors vote in favour of the deal, which had drawn substantial criticism from shareholders

Newmont has promised to pay shareholders a special dividend of 88c should they vote in support of the merger.

Newmont welcomed the positive result. "We appreciate Goldcorp shareholders' vote of confidence, which moves us one step closer to creating the world's leading gold business as measured by assets, prospects and people," CEO Gary Goldberg said.

Newmont believes the merger will create $4.4 billion in pre-tax NPV, establishing a portfolio with 6-7Moz/y gold at steady-state production. The merger will oust Barrick Gold as the world's biggest gold producer despite its recent $5.4 billion acquisition of African gold leader Randgold Resources.