Barrick gold calls off hostile Newmont bid, signs Nevada Joint venture

by   |  VIEW 353
Barrick gold calls off hostile Newmont bid, signs Nevada Joint venture

On Monday, the 11th of March 2019, Barrick Gold Corp., largest gold mining company in the world, headquartered in Toronto, had pulled the plug of their $18 billion all-stock buyout offer for Newmont Mining Corp. and agreed to sign a joint venture for Nevada mine instead with its arch-rival, putting end to a hostile acquisition bid that could have united the world’s two largest gold miners.

A merger deal for Nevada mine, home of one of the world’s largest gold producing regions, would likely to proffer an annual revenue for both Barrick and Newmont as much as $5 billion over next two decades. According to the treaty introduced on Monday (March 11th), Toronto-based Barrick would be controlling 61.5 percent stake of the joint venture for the Nevada mine, which has the capability to produce over 4 million ounces of gold annually, when fully operational.

The merger comes as a breathing space for the gold industry, as the pick deal would likely to ease concerns of struggling gold industry, which had met with a wide-scale loss of investor confident and financial restrains in recent past.

Citing the transitional joint venture deal as a rare sight, in an interview with the press, Barrick CEO Mark Bristow said the reporters, “This is one of those rare transactions that really does create demonstrable value for everyone involved. It shows that people if you put your mind to it, can deliver transactions in a very short while”.