Newmont Mining Corporation (NYSE:NEM) announced Wednesday that proxy advisory firm Glass, Lewis & Co has recommended that shareholders vote 'yes' to the proposed merger with Goldcorp Inc (NYSE:GG) (TSE:G).
The Denver-based gold miner is scheduled to hold a vote at a special shareholder meeting on April 11.
"The rationale and potential benefits of the combination are fairly clear and compelling for shareholders of both companies," stated Glass Lewis in its report.
The merger would result in a company with an annual production target of 6 to 7 million ounces of gold, according to Glass Lewis. The firm also said that the transaction is expected to be 27% accretive to Newmont’s net asset value per share.
Glass Lewis joins Institutional Shareholder Services (ISS) as the second such firm to recommend the merger with Goldcorp.
In other news, Newmont revealed its plans for the new leadership team to guide Newmont Goldcorp post-merger.
Effective June 1, Tom Palmer, Newmont’s current president and chief operating officer, will take on the role of president at the new company. Rob Atkinson will take over the role of chief operating officer.
Current Newmont CEO Gary Goldberg will stay in his position until the fourth quarter of 2019, when he is expected to retire.
Newmont’s shares rose slightly on Wednesday in New York to close at US$35.71. Goldcorp shares were up 0.4% to US$11.40 in New York and 0.8% in Toronto to close at C$15.32.
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