Newmont Mining Corp. shareholders have voted resoundingly in favour of the company’s US$10-billion acquisition of Vancouver’s Goldcorp Inc., removing the last major obstacle to one of the biggest deals ever in the gold sector.
Shareholders on Thursday voted more than 98 per cent in favour of the transaction. A week ago, Goldcorp shareholders also voted in favour of the deal.
The transaction, expected to close later this quarter, means Colorado-based Newmont will bypass Toronto’s Barrick Gold Corp. and take the triple crown as biggest gold company in the world by market value, production and reserves.
But now Newmont must follow through on its promises. The company said it can wring US$365-million a year in cost savings out of combining with Goldcorp. And Newmont and Barrick said they expect to generate an average of US$500-million in savings over the first five years from a joint venture (JV) agreement they reached to combine their Nevada gold-mining operations.
Barrick had attempted to acquire Newmont in a hostile takeover and thwart its acquisition of Goldcorp, but reached an agreement with Newmont on the joint venture as an alternative.
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