US Gold miner Newmont buys rival Goldcorp for $10 bn

New York (AFP) – US gold miner Newmont Mining Corporation said in a statement Monday it was buying Canadian rival Goldcorp Inc for $10 billion.

Colorado-based Newmont said it would buy all of Goldcorp’s outstanding common shares in a stock-for-stock transaction, acquiring each share for 0.3280 of a Newmont share, “which represents a 17 percent premium based on the companies’ 20-day volume weighted average share prices,” a company statement read.

The industry has been consolidating as gold mines around the world get depleted, driving up costs and encouraging companies to come together in mergers and alliances.