Goldcorp

(GG)

agreed to buy

Glamis

(GLG) - Get Report

for $8.6 billion in stock in a matchup of Canadian gold miners.

Vancouver, B.C.-based Goldcorp will issue 1.69 shares for each share of Toronto-based Glamis. Goldcorp said the deal gives Glamis holders a 33% premium to Wednesday's closing prices.

The new company will be called Goldcorp and will be 40% owned by Glamis shareholders. Glamis agreed to pay a $215 million breakup fee and to give Goldcorp the right to match offers.

The news comes as the recent surge in commodity prices fuels a wave of mining industry consolidation, with players like

Inco

(N)

and Falconbridge receiving multiple buyout bids.