2/25/2019, 1:07 PM (Source: TeleTrader)
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Barrick Gold launches $18B Newmont acquisition bid

Gold mining giant Barrick Gold Corp. has made a proposal to Newmont Mining Corp's board of directors to merge in an approximately $18 billion all-share transaction, the former announced in a press release on Monday.

Under Barrick's proposal, each Newmont shareholder would receive 2.5694 Barrick shares per Newmont share, which would equate to around $17.85 billion for all of the latter's shares. If the deal goes through, Barrick's shareholders would own approximately 44.1% of the merged company while Barrick's shareholders would own the remaining 55.9%. According to Barrick president and CEO Mark Bristow, the proposed merger would unlock more than $7 billion in real synergies, a significant portion of which would be generated by the two companies’ highly complementary assets in Nevada.

The announcement confirmed reports on Friday that indicated that Barrick was looking to acquire Newmont. Newmont agreed a deal to acquire Goldcorp Inc. for $12.5 billion in January while Barrick previously merged with Randgold Resources in a deal valued at approximately $18.3 billion.

Breaking the News / DZ