Goldcorp and Newmont Mining have secured approval from the Government of Korea for their previously announced merger, a deal which is valued at $10bn.
The Government of Korea, through the Korea Fair Trade Commission, issued a letter stating that the proposed combination is not in violation of Article 7 (1) (Restriction on Business Combination) of the Monopoly Regulations and Fair Trade Act, thereby clearing the previously announced transaction to proceed.
Last month, Newmont signed a definitive agreement to acquire all of the outstanding common shares of Goldcorp.
As part of the agreement, the two gold industry leaders will merge into a new company called Newmont Goldcorp.
The Canadian Competition Bureau issued a “no action” letter earlier this month and gave its clearance to the transaction under Canadian competition law.
Newmont and Goldcorp will continue to cooperate with other regulatory agencies for obtaining the remaining approvals to close the deal.
Newmont Mining CEO Gary Goldberg said: “We continue making steady progress in securing the necessary approvals to close our transaction with Goldcorp in the second quarter as previously announced.
“Once the transaction is complete, Newmont Goldcorp will be the world’s leading gold company and represent the best path to creating long-term value for our shareholders and other stakeholders without exposing them to unnecessary jurisdictional and other risks.”
Upon closing, the transaction will create a combined $265m in expected annual pre-tax synergies and full potential benefits, and target six to seven million ounces of steady-state gold production.
Furthermore, the deal will offer financial flexibility and an investment-grade balance sheet to advance the projects.