Barrick goes hostile with $18-billion all-stock bid for U.S. rival Newmont – by Niall McGee (Globe and Mail – February 25, 2019)

Barrick Gold Corp. is offering to buy Newmont Mining Corp. in an unsolicited, all-share, no-premium transaction, claiming it is a “once in a lifetime” opportunity to create an ‘unrivalled leader” in the global gold sector.

In a statement before markets opened on Monday, Barrick said it is offering 2.5694 shares for each Newmont share in a deal worth approximately US$17.8-billion.

Toronto-based Barrick says its proposal is far superior to Newmont’s US$10-billion offer to buy Goldcorp Inc., which was announced last month but hasn’t yet closed.

Barrick says its acquisition of Newmont would create up to US$7-billion in synergies mainly through cost savings due to the overlap in operations in Nevada, where both companies have massive mines and exploration projects. Barrick said the proposed synergies are seven times larger than those touted by Newmont in its proposed acquisition of Goldcorp.

News of a possible deal surfaced last Thursday when The Globe and Mail and Bloomberg reported that Barrick was exploring an acquisition of Newmont. Barrick confirmed on Friday it was weighing a takeover of Newmont, which caused a bump in Newmont’s share price, indicating its investors were open to the transaction.

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