Fending off a hostile takeover while creating the world's largest gold mining company
An innovative North American joint venture followed by a capital markets megamerger forged a golden giant.
US$10 billion combination confronted a hostile bid
Just as Newmont Mining Corp., a leading US-based gold producer, was seeking to acquire Canada’s Goldcorp Inc. in a US$10 billion stock swap, it faced a simultaneous hostile takeover launched by Canada-based gold mining behemoth Barrick Gold Corp.
Strategic joint venture and a multijurisdictional merger of mining giants
We worked with Newmont to respond to Barrick with a proposal for a friendly North American joint venture. Barrick agreed that the combination would create significant synergies and withdrew its hostile bid. Then our teams in New York, Washington, DC, Mexico City and Europe worked with Newmont to structure both the JV deal with Barrick and the Goldcorp acquisition, while obtaining regulatory authorizations and shareholder approvals in multiple jurisdictions worldwide.
Shining prospects for the combined company
Now the world’s largest gold company, Newmont Goldcorp is the only gold producer included in the S&P 500 Index, and its North American JV with Barrick will equal the world’s fourth-largest gold company. Newmont now operates a premier gold business with mines in the Americas, Australia and Africa, producing millions of ounces of gold annually.
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