The rapidly changing front for the Barrick-Newmont Merger

Barrick has launched a $US17.8 billion bid to create the world’s largest gold company. This a significant effect on the Newmont’s $US10 billion merger with Goldcorp Mark Bristow (Barrick Chief Executive Officer) said the proposed merger with Newmont would unlock more than $7 billion of real synergies.
“The combination of Barrick and Newmont will create what is clearly the world’s best gold company, with the largest portfolio of Tier 1 gold assets and the highest level of free cash flow to drive future growth and support sustainable shareholder returns, run by a management team with an unparalleled record of delivering growth,” However, it seems Newmont do not believe this merger will add more value to it compared to its current merger with Goldcorp.
According to Bristow, “Most important, it will enable us to consider our Nevada assets as one complex, which will result in better mine planning and fully realize the state’s enormous geological potential for all stakeholders, ”Bristow said, “Considered globally, the merger represents a radical and long-overdue restructuring of the gold industry, and a transformative shift from short-term survival tactics to the long-term creation of sustainable value.” It remains to be seen in the future if this holds water, but one thing is certain within the mining industry, this is the unravelling of a series of mergers that will follow as the mining industry start repositioning itself towards the new challenges it faces.