Barrick Gold Corporation, the largest Canadian gold producer, has offered a merger to Newmont Mining, a US mining company. The main assets of the gold miner are located in the United States, Peru, Argentina, and the Dominican Republic, while Newmont Mining Corporation's assets are based in the US, Australia, Ghana, Peru, and Suriname.
At the moment, the Canadian company proposes to pay 2.5694 Barrick shares per every Newmont share. According to experts, such a transaction will meet the market conditions. Experts emphasize that all calculations are based on weighted average price of the companies' shares on the New York Stock Exchange for the last 20 trading day. If the deal goes through, Barrick Gold and Newmont shareholders will receive 55.9% and 44.1% of the merged company, respectively.
Experts predict the transaction would generate benefits of $7 billion before tax. The united company’s revenue is estimated at about $15.6 billion, while EBITDA is expected to be $7 billion. Aggregate gold reserves would reach 141 million ounces, and the volume of resources would amount to 275 million ounces.
