Barrick bought Randgold Resources for just over $6 billion last month while Newmont is set to complete its acquisition of Goldcorp Inc. (GG) for $10 billion next quarter.
Newmont to acquire Goldcorp for $10 billion to create gold mining giant
According to a report by Bloomberg, Barrick has been studying its bid for Newmont for quite a while, including the possibility of partnering with a company like Newcrest for the purpose. Barrick and Newmont have discussed the possibilities of mergers and joint ventures on previous occasions.
Mark Bristow, CEO of Barrick Gold, said last month that the mining industry was ripe for reorganization. The report hinted that consolidation in the gold sector was a topic to keep an eye on in the coming days.
On Thursday, Newmont reported its fourth-quarter earnings results, beating sales and profits estimates. Gold production rose 8% in the quarter but realized price dropped 3%.
Barrick’s shares were down slightly in premarket hours on Friday while Newmont’s stock was up 1.5%.