TORONTO- Barrick Gold Corp. is dropping its hostile takeover offer for Newmont Mining Corp. in favour of creating a joint-venture that will combine the two companies’ mining operations in Nevada.<\/p>\n
Under the deal, Barrick will hold a 61.5 per cent stake in the joint venture, while Newmont will own 38.5 per cent.<\/p>\n
The two big gold miners have operated independently in Nevada for decades, but previously had been unable on agree on a way to co-operate.<\/p>\n
The companies say the joint venture will allow them to capture an estimated $500 million in average annual pre-tax synergies in the first five full years of the combination.<\/p>\n
Barrick had launched a takeover offer for Newmont in February but was rebuffed by the company, which countered with its own proposal of a joint venture.<\/p>\n
The establishment of the joint venture is subject to conditions, including regulatory approvals, and is expected to be completed in the coming months.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
TORONTO- Barrick Gold Corp. is dropping its hostile takeover offer for Newmont Mining Corp. in favour of creating a joint-venture that will combine the two companies’ mining operations in Nevada. Under the deal, Barrick will hold a 61.5 per cent stake in the joint venture, while Newmont will own 38.5 per cent. The two big …<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pmpro_default_level":""},"categories":[42,36,39],"tags":[],"yoast_head":"\n