An $18.3 billion merger is underway between Canadian company Barrick Gold and Randgold Resources to create the world's largest gold mining operation.
The Canadian group Barrick Gold has proposed a takeover bid to its competitor Randgold Resources worth $18.3 billion. This is the largest merger & acquisition transaction in the gold industry for years.
The world's future largest gold producer should keep the name Barrick. The combined entity will have a market value of more than $18 billion. Barrick shareholders will own approximately 67% of the entity, while Randgold shareholders will own approximately 33%.
Mark Bristow, Randgold's current President, will become the new company's CEO, while John Thornton, Barrick Gold's current Executive Chairman, will hold the same position within the new entity.
Five of the world's ten largest gold mines will be owned by the new multinational . The company will have the "largest gold reserves among its leading gold counterparts," the two companies said.
This merger occurs despite a very complicated year for the gold industry sector. Since the beginning of 2018, the price of gold has fallen by nearly 9% and last month it fell below $1,200 per ounce for the first time since January 2017.
The combination of their strengths and the combination of their immense resources will, according to Barrick and Randgold's hope, help to face this crisis.
"Our success will be measured primarily by the yield we produce, not the number of ounces of gold we produce, balancing boldness and prudence to provide consistent and growing returns to our fellow owners," Mr. Thornton declared.
Posted by: BUNKER GOLD&SILVER
Source: money.cnn.com