Gold Fields Wants to Combine With Rival AngloGold – by Felix Njini (Bloomberg News – January 22, 2019)

Gold Fields Ltd. would like to merge with its larger South African rival AngloGold Ashanti Ltd., as the industry experiences a wave of consolidation, according to a person familiar with the matter.

Gold Fields believes it would be the ideal combination as the two miners operate in similar jurisdictions and have a shared philosophy, said the person, who asked not to be identified because the information is private. Discussions haven’t taken place yet, the person said.

A merger would bring together two miners with a combined market value of about $8 billion. The enlarged company could produce almost 6 million ounces of gold a year, closing the gap on Newmont Mining Corp. and Barrick Gold Corp., which have both announced mega deals.

Gold Fields shares climbed as much as 7.7 percent and AngloGold rose as much as 3.5 percent in Johannesburg. Spokesmen for Gold Fields and AngloGold declined to comment.

“If you are going to survive in the long term, you are going to have to look at consolidation,” Gold Fields Chief Executive Officer Nick Holland said in a Jan. 15 interview. A tie-up would allow the two Johannesburg-based producers to repackage their troubled South African mines together for a potential sale should a buyer be found, the person said.

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