Newmont forms world’s largest gold miner with $10bn deal for Goldcorp

Newmont Mining Corporation will balloon to become the world’s largest gold company as it buys Goldcorp in a deal valued at $10bn (£7.8bn).

The share-based deal will produce a new global behemoth, bringing together two companies who produced a combined 7.9m ounces of gold in 2017, giving it strong leverage over global gold prices.

Read more: Shareholders at Randgold Resources vote to back merger with Barrick Gold

The new giant, named Newmont Goldcorp, will operate across the Americas, Australia and Ghana, tapping into the world’s largest gold reserves and resources, the companies said.

The deal will also help the miners streamline, saving around $100m in pre-tax synergies every year.

The acquisition comes after a line of recent consolidation in the gold mining sector as the sector looks to cut costs in the face of dwindling supplies of easily accessible gold.

Last year Canadian miner Barrick paid $5.4bn for Randgold, a South African outfit, gaining chief executive Mark Bristow in the process.

Rivals such as Barrick may be able to get a piece of the sector's most recent megadeal as Newmont said it would sell off up to $1.5bn of assets over the next two years.

Read more: Randgold profits rise ahead of shareholder vote on $6bn Barrick merger

“This combination will create the world's leading gold business with the best assets, people, prospects and value-creation opportunities,” said Newmont chief executive Gary Goldberg.

“We have a proven strategy and disciplined implementation plan to realise the full value of the combination, including an exceptional pool of talented mining professionals, stable and profitable gold production of six to seven million ounces over a decades-long time horizon, the sector's largest gold reserve and resource base, and a leading project and exploration pipeline.”