Canada’s Barrick Gold Corp offered to buy U.S. rival Newmont Mining Corp for nearly $18 billion in stock on Monday, in a hostile takeover that seeks to combine the world’s two largest gold producers.
Newmont responded by saying it had already reviewed and rejected possible deals with Barrick and said its own $10 billion pending purchase of Goldcorp Inc made more business sense.
Barrick said its acquisition of Newmont would be contingent on the company scrapping the deal to buy Toronto-listed Goldcorp, adding its offer was a “significantly superior” option for Newmont shareholders.
“The combination of Barrick and Newmont will create what is clearly the world’s best gold company, with the largest portfolio of Tier One gold assets,” Barrick Chief Executive Officer Mark Bristow said in a statement.
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