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Barrick's shareholders will hold approximately 66.6% of the combined business on completion, with Randgold's shareholders holding the remaining 33.4%.
Photo:
Stefan Wermuth / Bloomberg News
Randgold Resources Ltd. and Canada
Barrick Gold
Corp.
ABX -1.41%
have agreed to a 50/50 merger that will create a gold mining giant of $ 18.3 billion.
Under the terms of the agreement, each Randgold shareholder will receive 6,1280 new Barrick shares for each Randgold share held, the two companies announced on Monday.
Barrick's shareholders will hold approximately 66.6% of the combined business on completion, with Randgold's shareholders holding the remaining 33.4%, the companies said.
"The combination of Barrick and Randgold will create a new champion of value creation in the gold mining industry, bringing together the world's largest collection of leading gold assets, with a proven management team that has consistently private sector returns over the last decade, "said Barrick Executive Chairman John L. Thornton.
The combined group will hold five of the top ten gold assets in the world, with two potential gold projects under development or expansion, the two companies said. The new group will consider selling non-core assets over time, the two companies said.
Based on the 2017 results, the expanded group would have generated $ 9.7 billion in revenue and adjusted earnings before interest, taxes, depreciation and amortization of $ 4.7 billion, the companies said.
Write to Adria Calatayud at [email protected]
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