Proxy Blog

Newmont Mining Corporation Acquisition of Goldcorp, Inc. 

April 3, 2019

The Newmont Mining proxy had three proposals related to the acquisition: 

  1. To amend and restate the Certificate of Incorporation in order to allow an increase in authorized shares 
  2. To approve issuance of shares 
  3. To approve adjournment or postponement of the special meeting… 

 Magni voted against all proposals on the proxy. Most large acquisitions destroy shareholder value. Both McKinsey and Bain have done studies that show this. To increase the probability of creating value and to maximize the amount of value created (relative to the acquisition price), best practices are frequent, smaller acquisitions made as part of a clear strategy. Large acquisitions of public companies tend to be the least successful. The proposed acquisition of Goldcorp has a deal value of approximately $10 billion.