Goldcorp (GG) announced Monday that it had elected not to raise its hostile offer for Osisko Mining Inc., meaning that Yamana Gold Inc. (AUY) and Agnico Eagle Mines Ltd. (AEG -0.51%) won't face further competition from Goldcorp. Last week Yamana and Agnico Eagle made a C$3.9 billion (or C$8.15 per share) offer which topped a previous offer made by Goldcorp for C$3.6 billion (or $7.65 per share in cash and stock).

The deal calls for Yamana and Agnico Eagle to jointly operate the Canadian Malartic Mine and become equal partners in the Kirkland Lake and Hammond Reef projects. A new company will also be created that will be valued at C$575 million and will retain C$155 million in cash, a 5% net smelter royalty on the Canadian Malartic Mine and a 2% net smelter royalty on the Kirkland Lake, Hammond Reef and Pandora properties. The new company will also include Osisko's Mexican exploration properties.

Goldcorp had vowed to their shareholders not to overpay, and they are sticking to their word, which should make shareholders happy. The C$3.6 billion Goldcorp offered was substantially more than the C$2.6 billion they offered only a couple months ago in January. Goldcorp had made the C$3.6 billion offer to top a complicated white knight offer from Yamana for 50% of Osisko that would have valued the company at roughly C$3.4 billion. It is understandable why there is so much interest in Osisko and their Canadian Malartic mine, as the mine will produce roughly 600,000 ounces of gold per year for the next 14 years, making it the largest single gold producing mine in Canada in the very mining-friendly jurisdiction of Quebec. The Osisko acquisition comes amid low gold prices and at a time when gold mining giants Barrick Gold Corp and Newmont Mining Corp are in discussions of a possible merger.

No Love Lost Between Osisko CEO and Goldcorp CEO
Goldcorp has been pursuing Osisko for years and previously tried to acquire Osisko back in 2008 and again in 2009. In 2008, Goldcorp made an offer of $1.78 per share, which Osisko accused of being value destructive. Osisko claimed that they tried to get Goldcorp to raise the offer, but that Goldcorp refused, responding that it would never be able to get the financing needed to build its Malartic mine. For their part, Goldcorp has accused Osisko of never having seriously entertained their bids and of stonewalling them by not providing confidential information that they had agreed to provide. 

Goldcorp CEO Chuck Jeannes seems infatuated with Osisko; however, these feelings are clearly not reciprocated by Osisko CEO Sean Roosen, who had been working hard to convince shareholders that the Goldcorp deal is not in their interests. Sean Roosen had been on the offensive telling shareholders that he believes Goldcorp needs to buy Osisko in order to cover deficiencies at its other mines. He also stated that Osisko has higher upside potential than Goldcorp ever will. 

Goldcorp CEO, Chuck Jeannes for his part had been working hard to convince Osisko shareholders it was in their interests to accept Goldcorp's offer. In addressing criticism that Goldcorp wanted to do the transaction to mask problems at their own mines he stated, "this is a transaction being done to strengthen Goldcorp, not to cover any deficiencies." 

Foolish bottom line
The battle for Osisko appears to be over, as all that remains is shareholder approval. CEO Sean Roosen must be happy as it was clear that he preferred to do a deal with anyone other than Goldcorp. With the impending acquisition of Osisko by Yamana and Agnico Eagle, it will be interesting to see if other gold miners will be looking to buy assets as the price of gold remains low. While this saga may be over, the real winner appears to be Osisko shareholders who have seen the value of their stock rise rapidly as the battle for their company waged on.