Newmont to buy Goldcorp in $10 billion deal

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FILE PHOTO: The portal is seen at Goldcorp Inc’s Borden all-electric underground gold mine near Chapleau, Ontario, Canada, June 13, 2018. REUTERS/Chris Wattie

(Reuters) – Gold miner Newmont Mining Corp (NEM.N) said on Monday that it would buy smaller rival Goldcorp Inc (G.TO) (GG.N) in a deal valued at $10 billion.

Newmont will offer 0.3280 of its share and $0.02 for each Goldcorp share.

“The strategic rationale for combining Goldcorp with Newmont is powerfully compelling on many levels..” Goldcorp Chief Executive Officer David Garofalo said in a statement.

The combined company’s reserves and resources will represent the largest in the gold sector and will be located in favorable mining jurisdictions in the Americas, Australia and Ghana, the companies said.

Goldcorp’s New York- listed shares were up 1.3 percent in before the bell trading on Monday.

Reporting by John Benny in Bengaluru; Editing by Shailesh Kuber

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