Feb 25, 2019

Barrick Gold seeks hostile takeover of Newmont Mining

Barrick Gold Chariman John Thornton speaks during the Barrick Gold's Annual General Meeting at the Metro Toronto Convention Centre.

Barrick Gold chariman John Thornton. Photo: Cole Burston/Toronto Star via Getty Images

Barrick Gold made an $18 billion hostile takeover offer for Newmont Mining in order to create the world's largest gold miner.

Why it matters: This would be the endgame for what has been a stunningly swift consolidation of the gold mining sector. Barrick last fall bought Rangold for $6.5 billion, creating the world's largest gold miner. Then, just last month, Newmont agreed to buy Goldcorp for $10 billion in order to create ... well, you guessed it. At the time of that last deal we wrote: "Your move Barrick."

  • Caveat: If Barrick succeeds in this deal, which is far from certain, Newmont would have to terminate its deal for Goldcorp.

The bottom line: "The offer sets up a showdown between management teams at two of the mining industry’s fiercest rivals. Barrick has long considered merging with Newmont, America’s largest listed miner, to pair up their large gold-mining operations in Nevada and create an industry giant that would dwarf the nearest competitor," writes the Wall Street Journal's Alistair MacDonald.

Go deeper: Newmont Mining agrees to buy Goldcorp for $10 billion

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