Goldcorp shareholders approved Newmont Mining Corp’s $10 billion takeover offer on Thursday, paving way for creation of the world’s largest gold venture. There has been some resistance within the Goldcorp shareholders in recent weeks in the end the biggest-ever corporate takeover in the gold sector’s history s going ahead.
Next week on Thursday, Newmont shareholders will sit to vote for the deals approval and is expected to close by June. About 97 percent of Goldcorp’s outstanding shares that were voted at a special meeting were cast in favor of the deal, the company said in a statement. Newmont had offered 0.328 of its shares and 2 cents for each Goldcorp share.
“We appreciate Goldcorp shareholders’ vote of confidence, which moves us one step closer to creating the world’s leading gold business,” Newmont Chief Executive Gary Goldberg said in a statement. Newmont Goldcorp the new company formed, will have an annual production, churning out 6 million to 7 million ounces of gold annually over the next 10 years.
There will be assets up for grabs as both companies are expected to shed off some of their assets as part of the merger deal. This could potentially unravel another rush in takeovers that has characterized the gold industry in recent times.