dChan
Anonymous ID: eba00f March 11, 2019, 6:41 p.m. No.5632806   🗄️.is 🔗kun   >>2989

Barrick Gold ends hostile Newmont bid, signs Nevada joint venture

 

Reuters) - Barrick Gold Corp on Monday pulled its $18 billion offer for Newmont Mining Corp and agreed to form a joint venture in Nevada with its rival, ending a hostile takeover bid that sought to unite the world's two largest gold producers.

 

By combining their operations in the southwestern U.S. state, which is home to one of the world's largest gold-producing areas, Barrick and Newmont hope to save more than $5 billion over the next 20 years.

 

Toronto-based Barrick will control 61.5 percent of the venture, giving it slightly less oversight than it initially wanted even as it gains full operational control over mines that produce more than 4 million ounces of gold annually.

 

The agreement comes amid a pickup in deals across the gold industry, which has struggled with a loss of investor confidence and financing constraints in recent years.

 

"This is one of those rare transactions that really does create demonstrable value for everyone involved," Barrick Chief Executive Officer Mark Bristow told Reuters on Monday. "It shows that people, if you put your mind to it, can deliver transactions in a very short while."

 

Shares of Barrick were up about 0.9 percent at $13.05 on the New York Stock Exchange and up 1.1 percent at C$17.53 on the Toronto Stock Exchange in early afternoon trading. Newmont shares were down 2.3 percent to $32.92 in New York.

 

Colorado-based Newmont rejected Barrick's all-stock zero-premium hostile takeover, which was launched last month, and proposed instead the Nevada joint venture, which both companies have tried to form for years.

 

https://www.marketscreener.com/GOLD-4947/news/Barrick-Gold-ends-hostile-Newmont-bid-signs-Nevada-joint-venture-28144264/?countview=0