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Newmont receives Canadian clearance for merger

Newmont Mining (NYSE: NEM) has cleared one of the regulatory hurdles on the path to its merger with Vancouver-based Goldcorp (TSX: G).
Newmont receives Canadian clearance for merger Newmont receives Canadian clearance for merger Newmont receives Canadian clearance for merger Newmont receives Canadian clearance for merger Newmont receives Canadian clearance for merger

Gold miner clears a regulatory hurdle on path to merger with Goldcorp

Staff reporter

The pair had announced their planned all-share merger in January, two weeks after the Barrick-Randgold merger was finalised, and look poised to become the world's biggest gold miner by production.

Newmont said yesterday it had received a "no action" letter from the Canadian Competition Bureau, clearing the proposed transaction.

"Newmont continues to cooperate with other regulatory agencies regarding additional approvals that are conditions to closing of the combination," the company said.

The transaction is expected to close in the June quarter.

The enlarged Newmont Goldcorp will target 6-7 million ounces of steady-state gold production, compared with the new Barrick's gold guidance of 5.1-5.6Moz for this year.   

Newmont has said it expected to gain US$100 million of savings from synergies between the two companies once the deal closed, by relocating Newmont's North American headquarters from Elko to Vancouver, and by optimising Goldcorp's assets.

Newmont shares are down 4% year-to-date while Goldcorp has gained about 7% in Toronto.