Operations
The merger between Newmont / Barrick was said to be all but done . Both companies had agreed upon terms and were reportedly in the final stages of agreements . Then in the blink of an eye it all ended . Days later war of words broke out with finger pointing occurring on both sides to why the deal wasn ’ t going to happen .
It was going to be the biggest deal in history for the mining industry ; combining two of the world ’ s largest gold mining companies into one powerhouse . The possibilities were endless for the companies , including a potential $ 1 billion in cost savings . So why did the merger discussions fail ?
Clash of personalities The two firms have tried numerous times over the years to merge , going back at least as far as 1991 . Under the now-abandoned proposed terms , the merged companies were set to spin off their assets in Australia and New Zealand . That move would have allowed the companies to focus on their most productive assets in Nevada as well as squeeze the most synergies , while offering investors the choice to participate in a separate company .
For a marriage to be successful ,
Barrick ’ s outgoing Chairman Peter Munk
both parties have to consent . In the proposed marriage between Barrick Gold and Newmont Mining , the two parties could not find common ground .
The merger talks didn ’ t work out because two companies could not agree on how the combined business would run . According to Barrick Gold , Newmont had reneged on three key elements to the proposed deal : a Toronto headquartered company , the composition of the
10 June 2014