Barrick Gold Corp. considered buying Kirkland Lake Gold Ltd. but says it ultimately passed because the big Canadian gold miner didn’t meet its standards for investment returns.
Agnico Eagle Mines Ltd. in September reached a friendly agreement to acquire Kirkland Lake in an all-stock, no-premium acquisition worth more than $13-billion. The deal will see Toronto-based Agnico increase its footprint significantly in Canada and Australia, two of the most stable mining jurisdictions in the world.
Earlier this week, Kirkland Lake said in a regulatory filing that it engaged in takeover talks with two other unnamed companies, before agreeing to be bought by Agnico. One of the companies went as far as making an offer for Kirkland, but that was rejected as too low, according to the filing. Talks with the other company went nowhere.
Mark Bristow, chief executive officer of Toronto-based Barrick, said in an interview that while Barrick looked at Kirkland, he did not see sufficient value to pull the trigger.
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