Merger Talks Between Barrick Gold And Newmont Mining Break Down

Discussion in 'Stock Market Forum' started by PaulSchinider, Apr 22, 2014.

  1. PaulSchinider

    PaulSchinider Well-Known Member

    Mar 2014
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    Barrick Gold Corporation and Newmont Mining Corp were in advanced talks to merge, but minor disagreements nullified negotiations between the two largest gold producers in the world

    According to the Wall Street Journal, merger talks between Barrick Gold Corporation (ABX) and Newmont Mining Corp (NEM) recently took place, but broke down over minor disagreements with hopes of a revival of talks in the future. This is the third time that Barrick Gold has tried to acquire Newmont Mining, failing before in 2008 and 2010.

    The two largest producers of gold in the world had agreed to an all-stock merger and planned to disclose the deal this week. Barrick Gold was willing to offer Newmont Mining’s shareholders a premium of 13% to Newmont’s average stock price in the last 20 days before the deal, according to people aware of the matter. Talks of a possible deal between the two companies – which have a combined market value of $33 billion – broke down after they were unable to agree to terms related to a spinoff of Australian and New Zealand assets.

    Both companies had also identified $1 billion per year in cost savings, mainly from operations in Nevada, which contributes around 60% of Barrack Gold’s total production.
    Under the proposed new plan, the new entity’s CEO would have been Gary Goldberg, who is currently Newmont’s CEO. Barrick Gold’s co-chairman John Thornton would have taken the position of executive chairman in the would-be company.

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