Loading ...Barrick Gold, Newmont Mining Agree to Joint Venture
Barrick Gold Corp., the world’s biggest gold miner, called of its nearly $18 billion acquisition offer for rival Newmont Mining Corp. after the two companies agreed to form a joint venture combining their Nevada operations.
Barrick offered last month to acquire the rival gold miner in an all-stock stock deal for $17.85 billion. Last week, Newmont rejected the offer, but proposed a joint venture. Barrick’s biggest stockholder — VanEck International Investors Gold Fund — said it preferred a joint venture.
“We listened to our shareholders and agreed with them that this was the best way to realize the enormous potential of the Nevada goldfields’ unequaled mineral endowment, and to maximize the returns from our operations there,” Barrick Chief Executive Mark Bristow said in prepared remarks.
The companies said the joint venture would deliver about $500 million in average annual synergies before tax in the first five years.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
March 11, 2019 08:39 ET (12:39 GMT)