Canada/UK: Barrick Gold will buy rival Randgold for US$6b

Canada’s Barrick Gold has agreed to buy rival Randgold Resources for US$6 billion reported the Wall Street Journal. The all-stock deal will create the world’s biggest gold miner with a US$18 billion market capitalisation, which will manage some of the most profitable operations in the US and Africa.

The deal will pair up two of the gold-mining industry’s biggest personalities: Barrick’s John Thornton, a former Goldman Sachs executive, and Mark Bristow, the chief executive of Randgold renowned for taking motorcycle trips through Africa, reported the Journal.

Both executives are also known for focusing on keeping costs in line and reining in debt. Barrick reported an adjusted profit of US$876 million last year, compared with a loss of more than US$10 billion in 2013. Randgold posted net income of US$335 million in 2017, a 14% increase from the previous year.

The tie-up follows a dismal year for the gold mining sector, which has struggled to convince mainstream investors that it can generate enough cash to grow output and also increase shareholder returns.

“We will now be able to step beyond our African boundaries onto the global stage,” Mr. Bristow said.

Full Content: The Wall Street Journal