Barrick Gold Offers to Buy Newmont Mining

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.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza