The world of the top global gold producers is like a jungle. There are predators and prey, and alliances made to keep predators from becoming prey.
Recently, Newmont’s $10-billion friendly offer for Goldcorp was shaken when Barrick suddenly made a hostile bid for the acquirer. Newmont and Goldcorp’s robust package eventually included a US$650-million break fee, strong non-solicitation provisions, and interim operating covenants restrictive enough to prevent any major change to Newmont’s business without Goldcorp’s consent.
On April 18, Newmont’s acquisition of Goldcorp closed, and four days later Newmont Goldcorp Corp. was born, instantly becoming the world's largest gold producer by assets.
At least until the next move. After all, it’s still a jungle out there.
Lexpert contributor Sandra Rubin describes the volatile acquisition at https://www.lexpert.ca/. Follow @Lexpert on Twitter.
Stay up to date on all our Streetwise stories. We have a Streetwise newsletter, covering mergers and acquisitions, plus financial services news. It is sent Tuesday to Saturday morning. Sign up today.