Newmont turn down Barrick’s buyout offer, propose Nevada Joint venture


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Newmont turn down Barrick’s buyout offer, propose Nevada Joint venture

On Monday, the 4th of March, 2019, the Newmont Mining Corp. had discarded an all-stock hostile buyout bid of Canadian rival, Barrick Gold Corp., instead, the American mining company based in Greenwood Village, Colorado, had cropped up with a proposal of a joint venture in Nevada.

As the largest gold miner, Newmont Mining Corp. was expected to reject the egotistical buyout proposal, Chief Executive Officer of Newmont, Gary Goldberg said on an investor call, “Barrick’s egocentric proposal is designed to transfer value from Newmont’s shareholders to Barrick As a response, the Chief Executive Officer of Barrick Gold Corp., Mark Bristow had been quoted saying in a statement on Monday (March 4th) that the proposal of a joint venture in Nevada had been “convoluted and stale”, and the assets of Nevada would better be run by a single company instead of a complicated and grudging merger, given the nature of cultural differences between the two gold mining giants.

Mark Bristow added in his statement, “We know we can do that more efficiently than Newmont and that it will be worth a lot more to both Newmont and Barrick shareholders under that scenario,” although the Barrick CEO had not directly responded to Newmont’s rejection of an all-stock buyout offer.