Barrick Gold to purchase Randgold Resources in $18.3 billion deal

Google+ Pinterest LinkedIn Tumblr +

Randgold Resources said it has agreed to the terms of a recommended share for share merger with Canada’s Barrick Gold in a deal worth $18.3 billion. The terms of the deal state that each Randgold shareholder will receive 6.1280 new Barrick shares for each share of Randgold.

Barrick shareholders will own about 66.6% of the new Barrick merged company, while Randgold shareholders will own about 33.4%. Barrick’s John Thornton will become the executive chairman while Randgold’s chief executive, Mark Bristow, will retain the same role in the merged company.

In a joint statement, the companies said “the boards of Barrick and Randgold believe that the merger will create an industry-leading gold company with the greatest concentration of Tier One Gold Assets in the industry, the lowest total cash cost position among senior gold peers”.

For poorly managing capital, gold miners have been criticised by investors, forcing them to focus on costs while dampening enthusiasm for acquisitions. Barrick Gold and Randgold have lost about a third of their market capitalisation over the past year.

 

Share.

About Author

Leave A Reply