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Barrick Gold Corp. issued a statement on February 22 in response to market and media speculation that the Toronto-based company plans to merge with Newmont Mining Corp., which is merging with Goldcorp Inc.
"Barrick Gold Corporation today confirmed that the Company has considered the possibility of amalgamating with Newmont Mining Corporation in a share premium transaction. No decision has been made yet, "Barrick said.
Newmont Group's director of corporate communications, Omar Jabara, wrote in an e-mail on February 22 that Newmont had "nothing to add to anything other than to say that we are aware of the statement of Barrick that she had considered the opportunity of an unsolicited merger without premium. with Newmont.
"We do not intend to speculate on Barrick's interest or motivation. We remain confident that the combination of Newmont and Goldcorp represents an unprecedented opportunity to create value for our shareholders and generate leading returns in the industry for decades to come, "said Jabara.
In the meantime, Newmont and Goldcorp announced on Feb. 22 that Goldcorp had received an interim order from the Ontario Superior Court of Justice regarding the amalgamation plan. Goldcorp is based in Canada.
The companies stated that the interim order allowed Goldcorp to hold its shareholders' meeting on April 4 and was a necessary step towards a final court order that would condition the closing of the transaction. The order relates to the acquisition of approximately $ 10 billion by Newmont and the acquisition of common shares of Goldcorp in exchange for 0.328 Newmont shares and 2 cents in cash for each Goldcorp share.
Newmont and Goldcorp, Colorado, plan to merge in the second quarter of this year. Barrick and Randgold Resources finalized a $ 5.4 billion merger on Jan. 1.
Barrick and Newmont have already been involved in merger talks, although the companies have operating agreements in Nevada, such as the Turquoise Ridge underground mine. Barrick operates the mine and owns 75%. Newmont owns the remaining 25% and treats Turquoise Ridge ore at its nearby Twin Creeks mine.
John Dobra, a longtime expert in the mining industry and retired Associate Professor of Economics at the University of Nevada, Reno, said in an interview with Elko Daily Free Press in early February that Previous discussions in Newmont-Barrick had failed due to an overly different corporate culture.
On the market side, Newmont's shares closed on February 22 at $ 36.48, up $ 1.07, while Barrick shares closed at $ 13.04, down 28%. cents. Goldcorp shares ended at $ 11.13, down 38 cents.
On February 22nd, Bloomberg wrote that Barrick had studied the possibility of teaming up with a partner, such as Newcrest Mining Ltd., as part of an offer on Newmont. Bloomberg announced that the general directors of Barrick, Newmont and Newcrest should attend a conference on mining organized by BMO Capital Markets next week, during which the merger talks could dominate the meeting.
Reuters commented that the latest idea of the merger of the two major gold producers "looks like crazy gold," in response to a Globe and Mail article that said Barrick had an eye on Newmont.
In the announcement of the court decision by Newmont, the company said the merger of Goldcorp would create an expected annual synergy of $ 265 million and potential benefits, representing a value creation of more than $ 2.5 billion .
The New Newmont Goldcorp plans to produce between 6 and 7 million ounces of gold over the decades with assets on four continents and generate the highest dividend among senior gold producers, announced the February 22 announcement.
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