Barrick confirms possible Newmont bid
Barrick Gold Corp. (ABX.TO) has confirmed it has reviewed a potential tie-up with Newmont Mining Corp. (NEM.N). In a short release Friday morning, Barrick said it has considered an all-stock, no-premium deal for the rival gold miner, but said no decision has been made at this time.
Bloomberg News and The Globe and Mail earlier reported Barrick had considered taking a run at Newmont.
Such a deal would echo Barrick’s US$6-billion no-premium merger with Randgold Resources, which was consummated late last year.
There’s been years of speculation about a potential tie-up between Barrick and Newmont, due to the proximity of the companies’ Nevada assets, including Barrick’s massive Goldstrike Mine.
While Barrick’s release makes no mention of Newmont’s planned US$10 billion takeover of Goldcorp, both Bloomberg News and the Globe and Mail reported Barrick would scuttle the deal, leaving Goldcorp as a standalone entity. Newmont would be on the hook for a US$650 million break fee if it walks away from the deal.
Newmont’s market cap now stands at about US$18.9 billion, while Barrick is worth about US$23.3 billion.