The merger between Barrick Gold and Randgold is causing turbulence in London Square.
Barrick's $6.5 billion takeover of London-based Randgold by Barrick leaves a void in the British stock market.
Following this merger, Randgold, which has been present in the British capital for 21 years, will move to North America. This loss is all the more detrimental for London as Randgold remained one of the most profitable and best-managed gold companies in the sector.
This departure pushes investors to talk about "a withdrawal that does not help Britain" and "a breake on the British financial sector".
Indeed, Randgold's migration to the United States is part of a change of focus from Randgold to the United States where London-based mining companies across the Atlantic. This year there were no new gold company listings in London, unlike the strong growth observed in North America.
London remains an important place for mining companies with the largest companies like Rio Tinto or BHP Billiton. But its hegemony, which seems to be declining, is also weakened by the Brexit vote. This suggests "sad days" for investors.
Posted by: BUNKER GOLD&SILVER
Source: mining.com