DENVER (AP) — Newmont Mining will buy Canada's Goldcorp for $10 billion, creating the world's biggest gold miner.
The combined company could log gold production of 6 million to 7 million ounces over a decade and recognize $100 million in annual pre-tax savings.
Miners are consolidating as gold becomes more expensive to procure. Barrick Gold said it would by Randgold for more than $6 billion just four months ago.
Newmont will acquire each share of Goldcorp Inc. for 0.3280 of its own, plus another 2 cents per share. Shareholders of Newmont Mining Corp. will own 65 percent of the combined business, with Goldcorp shareholders owning 35 percent.
The acquisition, expected to close in the second quarter, must still be approved by shareholders as well as regulators in Europe, Canada, South Korea and Mexico.