Barrick eyes hostile bid as Newmont set to become No. 1 gold producer – by Niall McGee and Rachelle Younglai (Globe and Mail – February 21, 2019)

Barrick Gold Corp. is mulling a takeover bid for Newmont Mining Corp., a transaction that would represent one of the largest mining deals ever and solidify the Toronto-based company’s position as the world’s largest gold producer.

Barrick is actively working on a plan for a two-step deal that would see it take over Colorado-based Newmont for about US$19-billion in stock, then flip some of Newmont’s assets to Australia’s Newcrest Mining, according to industry sources familiar with the situation.

The sources, who were granted anonymity by The Globe because they were not authorized by their employers to speak publicly, cautioned that there are still a number of hurdles. One of those obstacles is winning support from shareholders of Newmont. The company is attempting to close its own US$10-billion acquisition of Vancouver miner Goldcorp Inc., which was only announced last month.

Under the potential terms of the deal, Barrick would keep Newmont’s Nevada and African mines, while Newcrest would take over its Australian operations, which are worth billions.

An industry source said that Newcrest’s participation is still very fluid and that the Melbourne-based miner is taking a very careful approach before committing.

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