Barrick-Newmont Deal not shareholder friendly .’ Nothing could be further from the truth .”
A difference in culture also played a role in the collapse . Barrick Gold is well-known for being a very aggressive company by nature . Throughout its history , it has not shied away from big acquisitions in its effort to grow . On the other hand , Newmont is very much more conservative . The company does not engage in the same level of empire building .
The failure of the Barrick / Newmont deal demonstrates that clashing personalities and a difference in company culture can destroy a transaction that seemingly makes sense in every other way .
How to avoid failure Successfully implementing a merger is not easy . Roughly two in three mergers and acquisitions don ’ t succeed .
“ I like to tell my clients that you can learn lessons from successful transactions , from failed transactions , from any transaction ,” says Fentress Seagroves , a principal with PricewaterhouseCoopers ’ transaction services group , which advises on merger and acquisition strategy . “ All will raise different challenges .”
To maintain and complete a successful merger , companies must have three common traits : a disciplined corporate strategy , a thorough due-diligence process and attention to transitional risk .
“ Failure in a transaction is often created by the lack of a disciplined approach ,” Seagroves says . “ You have to do the same amount of research in an acquisition as you would trying to grow it organically .”
“ Spend a lot of time on how the contract can create protections for you ,” Seagroves says . “ You have to be sure all those things you planned in the
Barrick Gold Corp . Chairman , John Thornton
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