Barrick Gold agrees to buy rival Randgold in all-share deal

У світі з'явиться найбільша золотовидобувна компанія

The new company will have the sector's highest adjusted earnings before interest, tax, depreciation and appreciation and EBITDA margin of almost 50 percent based on 2017 numbers, and the lowest total cash cost position among its peers, the companies said.

The deal value, at 48.5 pound-a-share, matched Randgold's market capitalization as of Friday's close.

Under the terms of the deal, each Randgold shareholder will receive 6.1280 new Barrack shares for each Randgold share held, according to Dow Jones Newswires. John L. Thornton, executive chairman of Barrick, will become executive chairman of the new Barrick Group; Mark Bristow, CEO of Randgold, will become CEO of the new Barrick Group.

Thornton will remain as executive chairman, directing strategy and Bristow will be president and chief executive of the merged company, running day-to-day operations.

The deal will also give Barrick a much bigger presence in Africa, where Randgold has mines in Mali, Senegal, Côte d'Ivoire and the Democratic Republic of Congo.

The price of gold has fallen more than 8% this year, putting all gold producers under pressure.

The new company will keep the Barrick name and be listed in NY and Toronto, while Randgold's London listing will be cancelled.

Bristow added on another call that the new company would be open to weighing options for its Nevada and Australia assets, and said there had expressions of interest on the latter. Randgold Chief Financial Officer Graham Shuttleworth will become CFO of the new company.

The massive merger comes during a tough year for the gold industry. The strategies of the two companies are similar. "Both aim to generate free cash flow even if gold prices drop to as low as $1,000 an ounce", said Bloomberg News. They also have high internal "hurdle" rates for investment; in Barrick's case they must generate an internal rate of return of 15 per cent and in Randgold's 20 per cent.

The new Barrick, valued at $24 billion including debt, would be now the world's top gold miner by value and output, with a dominant position in Africa.

"From Randgold's perspective the deal diversifies exposure away from high-risk African markets and towards Barrick's more stable North American assets". Newmont didn't immediately respond to an emailed request for comment outside usual office hours. Randgold's London listing will be cancelled.

Related News:

  • Leonard says he's 'ready to play basketball' after injury-plagued year

    Leonard says he's 'ready to play basketball' after injury-plagued year

    Leonard was only in the Spurs lineup for nine games last season, but pronounced himself healthy and ready to roll. I want to do great things so I'm going to make sure I put in a full effort on the court each and every night.
    Nokia 5.1 Plus launched in India

    Nokia 5.1 Plus launched in India

    Airtel customers can receive Rs 1,800 instant cashback and 240 GB data over 12 months on plans of Rs 199, Rs 249 and Rs 448. The smartphone is part of the Google's Android One programme and runs on Android 8.1 Oreo out-of-the-box operating system.
    Paul Pogba explains why Alexis Sanchez will come good at Manchester United

    Paul Pogba explains why Alexis Sanchez will come good at Manchester United

    Paul Pogba is confident under-fire Alexis Sanchez will come good at Manchester United amid his team-mate's struggles to impress. Mourinho's men now trail Premier League leaders Liverpool by eight points and still have to face their bitter rivals twice.
  • Iran to continue exporting crude despite fresh USA sanctions

    On Monday morning, Brent crude , the main European futures contract, rose above $80 U.S. a barrel to $80.43 USA at mid-morning. However, Saudi Arabia and Russian Federation now say they have no more capacity.

    General election would be ‘people’s vote’ says Labour chancellor

    Corbyn appeared on the BB'C's Andrew Marr Show this morning and said he hoped there would be a general election soon. He added: 'But I was elected to empower the members of the party.
    Sen. Chuck Grassley Sets Friday Deadline for Kavanaugh Accuser

    Sen. Chuck Grassley Sets Friday Deadline for Kavanaugh Accuser

    If all 49 senators who caucus with Democrats vote no, two Republican no votes would sink Kavanaugh. The letter was leaked to the public without a name included within a week of the committee vote.
  • The crew of a Swiss merchant ship kidnapped by pirates

    The crew of a Swiss merchant ship kidnapped by pirates

    The pirates then destroyed the ship's communications equipment before making off with 12 of the 19 crew members. The Swiss foreign affairs ministry says none of the crew members is from Switzerland.
    Six Flags Fright Fest 30-Hour Coffin Challenge

    Six Flags Fright Fest 30-Hour Coffin Challenge

    If more than one contestant wins a drawing will determine the victor . Six Flags described them as "deluxe, 2'x7', slightly used coffins".
    ISIS video claims to show attackers of Iranian military parade

    ISIS video claims to show attackers of Iranian military parade

    Iranian armed forces members march in a military parade similar to that struck by gunmen on Saturday. There have also been economic protests in the region and protests over Iran's nationwide drought.
  • Saudi energy minister rips Trump tweet: 'I do not influence oil prices'

    That equates to an increase of about 1 million bpd, but the latest data shows they are some way from achieving that target. Prior to the US sanctions threat, Seoul imported 180,000 barrels per day of Iran's crude oil , according to the report.
    Apple Watch Series 4 comes to SA on 28th September

    Apple Watch Series 4 comes to SA on 28th September

    The iPhone Xs Max has now definitely been confirmed and being hyped up to be great for photo and video editing, as well as gaming. Okay we're onto the XR now and all the colours that were leaked earlier are accurate - white, black, yellow coral, blue and red.
    OnePlus 6T Alleged 'Official Poster' Displaying Waterdrop Notch, New Tagline Leaked

    OnePlus 6T Alleged 'Official Poster' Displaying Waterdrop Notch, New Tagline Leaked

    It is being speculated that OnePlus 6T will come with a 6.4-inch Optic AMOLED display with an FHD+ resolution of 2340×1080 pixels. The company has also confirmed that the OnePlus 6T will offer better more battery life as compared to its predecessor OnePlus 6 .


Most liked

Three lessons for Arsenal to take from matchday 6 win over Everton
Aaron Ramsey played a part in both goals, the first an assist on Lacazette's outstanding strike in the 56th minute. Their side had won their previous three Premier League matches, and didn't look like stopping.

FIFA Best Awards: Ronaldo & Messi set to snub lavish London ceremony
Winners France have a number of nominees tonight, of course, including coach Didier Deschamps and striker Kylian Mbappé. The former Tottenham midfielder's hopes of breaking 10 years of Messi and Ronaldo dominance are based on two things.

Iran summons UAE diplomat after Abu Dhabi adviser 'justifies' Ahvaz attack
Gunmen sprayed a crowd with bullets in the city of Ahvaz, killing at least 25 people, including children during the parade. Of the 25 people killed at Saturday's parade, 12 were from Ahvaz and the rest from elsewhere in Khuzestan province.

Dallas police fire officer who fatally shot man in his own apartment
Neither affidavit detailed how close, specifically, Guyger and Jean were to each other during the encounter. Renee Hall terminated Guyger, who was arrested for manslaughter in the shooting death of Botham Jean , 26.

49ers fear Garoppolo has a torn ACL
Beathard would likely start as quarterback, unless the 49ers front office decides to explore a trade or free agency. Top cornerback Richard Sherman went down with a calf injury, while backup Tarvarius Moore left with a wrist injury.

Trump on Brett Kavanaugh: "I am with him all the way"
Republicans, who hold a paper-thin majority in the Senate, can ill afford defections if Kavanaugh is to be approved. Whelan apologized for publicly naming Kavanaugh's former classmate and suggesting he may have assaulted Ford.

Labour set to back public vote on Brexit
A caller lost his temper with the Labour front bench for "changing their stance" on Brexit and the idea of a second referendum. Jeremy Corbyn will back a second Brexit referendum if Labour members vote for one during this week's party conference.

Vatican announces historic China accord to appoint bishops
The Holy see was re-launched in the last three years these endless negotiations started as early as the 1980s. It added that the deal "creates the conditions for greater collaboration at the bilateral level".

Kavanaugh denies 2nd claim of sexual misconduct
Staffers for Republicans on the committee reached out to Keyser as part of their investigation into Ford's claims. Ford alleges Kavanaugh sexually assaulted her at a party when they were teens decades ago.

Russian Federation warned Israel before downing of plane
In the past few years, Russian Federation has repeatedly announced that they would be transferring the S-300 missiles to Assad. Then, "one minute" after Israel's call, its F-16 planes struck targets in Latakia in western Syria , he said.

Amazon aims to make Alexa assistant bigger part of users' lives
But one of the most important improvements announced by Amazon earlier today is Skype calling, which is coming to Alexa very soon. What you can do is pair two Echo Dots to create a stereo setup that'll give you a more rounded listening experience.

Pompeo confident United States will win China trade war
The US will levy tariffs of 10% initially, rising to 25% at the end of 2018. Previous talks in late August led to little progress.

UK Labour hopes to paper over Brexit splits for united front
Speaking to the Sunday Mirror, Mr Corbyn said: "What comes out of conference I will adhere to". Brexit is one of several challenges facing Corbyn, who heads a divided party.

Tiger Woods: The stunning statistics
To come all the way back, Woods said a couple of times this year, was fantastic even before he won. "It was special to see them". Rose, on the other hand, won the FedEx Cup and a $US10 million ($13.7 million) payday, with Woods finishing in second spot.

Testimony by Trump court nominee's accuser set; new allegation surfaces
The White House and Kavanaugh have denied the allegation as a "smear", and the White House is standing by the president's nominee. They also compared the current controversy to the sexual harassment allegations against Clarence Thomas by Anita Hill in 1991.