A PYMNTS Company

US: Newmont rejects Barrick Gold’s US$17.8B hostile-takeover bid

By  |  March 5, 2019

Newmont Mining’s board of directors on Monday, March 4, rejected Barrick Gold’s US$17.8 billion hostile takeover bid. The offer would have created the world’s largest gold producer.

Newmont also stated its previously announced Goldcorp acquisition, in January, offered better benefits.

“The combination with Goldcorp is significantly more accretive to Newmont’s shareholders on all relevant metrics compared with Barrick’s proposal,” Newmont CEO Gary Goldberg said. A merger of Barrick and Newmont would create a gold-mining giant with annual production of more than 10 million ounces. However, Barrick has not offered a premium, telling shareholders they would benefit from the value created by merging the two companies

A deal will ultimately be decided by a small group of shareholders who own both companies. Newmont’s Mr Goldberg and Tom Palmer, who will take over from Mr Goldberg later this year,  will meet shareholders this week, including BlackRock, the largest shareholder in Newmont.

Full Content: Financial Times

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.