Newmont Mining Decided To Buy Goldcorp For 10 billion dollars
When it comes to eliminating competitor one of the best way to do that is by acquiring them, as of now this is what’s happening in the gold mining industry. Because one of the largest gold mining company in the world Newmont Mining has decided to buy Goldcorp for a whopping amount of $10 billion. After this acquisition, Newmont Mining will officially become the largest gold producer in the world regarding output. However, this is not the first time that much big deal is happening because in September of last year Barrick Gold agreed to buy Randgold Resources Ltd. In the gold mining industry, there are very few companies which are still in the business because this sector is going through the toughest time in history. Many companies have gone into bankruptcy because of the lack of funds to sustain in the market.
Overall the prices gold commodity is diminishing, and there are lots of factors which are causing this problem for the gold industry. The investors are pulling out their fund from these companies because of the poor management of funds by the company since there are businesses which went into bankruptcy solely because of the inadequate management of funds. Another significant problem in front of the gold mining companies is that the natural gold reserves are decreasing at a fast rate. The natural gold reserves are the primary source through which many mining companies run their businesses. This deal which has been signed by Newmont Mining and Goldcorp I’d beneficial for the companies.
The combined company is expecting to produce 6 to 7 million ounces of gold in the next ten years which could be an excellent achievement for the company like Newmont Mining. The investors of Goldcorp will receive the shares of Newmont Mining at the decided rate.