• 2 days Chinese Stocks Rebound After Regulatory Scare
  • 4 days Apple Stocks Falls After Blowout Earnings Report
  • 4 days The 5 Biggest IPO Disasters Of 2021
  • 5 days Crypto-Based ‘Shadow Financial Market’ Spooks Regulators
  • 8 days Ireland Balks At Biden’s Global Tax Plan
  • 11 days Robinhood To Trade On Nasdaq Targeting $32B Valuation
  • 15 days Facial Recognition Is Watching You
  • 16 days Biden’s $3.5T ‘Human Infrastructure’ Workaround
  • 16 days The Fed’s $3 Trillion Headache
  • 19 days Why Bitcoin Could Struggle To Recover After Epic Crash
  • 19 days Wells Fargo Back In The Spotlight Over Personal Loan Cancellations
  • 20 days Delta Variant Real Threat To Economic Recovery
  • 23 days JEDI Drama Continues With Microsoft Contract Cut
  • 25 days DiDi Shares Take a Beating From Chinese Regulators
  • 26 days Thousands Of Companies Hit In Latest Ransomware Attack
  • 26 days Jobs Report Has Big Numbers, But Still Big Problems
  • 27 days Robinhood’s ‘Mission’ Questioned in $70M Fine
  • 30 days Didi Just Went Public, And Uber Is Loving It
  • 31 days Islamic Finance On Track To Hit $3.7 Trillion
  • 32 days The Lumber Bubble Is Bursting
The Gold Rally Has Finally Run Out Of Steam

The Gold Rally Has Finally Run Out Of Steam

This year has been incredible…

Solar Boom Could Send Silver Prices Higher

Solar Boom Could Send Silver Prices Higher

Silver prices are already rocketing…

Maduro Turns To Gold Mining As Venezuela's Economy Crumbles

Maduro Turns To Gold Mining As Venezuela's Economy Crumbles

Is gold money? Venezuelan President…

Mining.com

Mining.com

Mining.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

Contact Author

  1. Home
  2. Commodities
  3. Precious Metals

Gold Majors Battle It Out Over Takeover Bid

Gold Majors Battle

Newmont Mining (NYSE:NEM) rejected Monday rival Barrick Gold’s (TSX:ABX) (NYSE:GOLD) all-stock $18 billion hostile takeover offer, but left the door slightly open by countering with the terms of a deal to merge their operations in Nevada.

Chief executive Gary Goldberg said Newmont’s board had concluded that its planned $10 billion takeover of Canada’s Goldcorp (TSX:G) (NYSE:GG) was the best deal for shareholders.

“The combination with Goldcorp is significantly more accretive to Newmont’s shareholders on all relevant metrics compared to Barrick’s proposal, even when factoring in Barrick’s own synergy estimates,” he said. “Realizing value through Barrick’s proposal for Newmont’s shareholders hinges entirely on a new management team that lacks global operating experience and is only two months into its own transformational integration.”

The offer rejection, anticipated by analysts, could consolidate the Colorado-based miner as the world's biggest gold producer, with Barrick grabbing the second place and Newcrest the third.

Getting nasty

Newmont’s contra-proposal sees its Toronto-based rival holding a 55 percent interest in a Nevada joint venture, while Newmont-Goldcorp would have a 45 percent stake.

Barrick and Newmont have held merger talks every decade or so for almost thirty years, with the last one blowing at the 11th hour in 2014.

A combination of the two would create the world’s No.1 gold miner with annual production of more than 10 million ounces. However, the Canadian firm has not offered a premium, telling shareholders they will benefit from the value created by merging the two companies.

Hostilities between the two companies have grown since Barrick’s approach last month. On top of the chief executives trading insults, Newmont has now released private communications between Barrick new boss Mark Bristow and Goldcorp chairman Ian Telfer in which he praises the Vancouver-based miner’s “strong portfolio” of assets in “world-class districts”. Bristow has previously said that Goldcorp has just one top tier gold asset in its portfolio, which is operated by Barrick.

By Mining.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment