Why Newmont rejected Barrick, and will stick with Goldcorp

Newmont’s Goldcorp acquisition is likely to close, and that the combined company will be unpalatable for Barrick to acquire, according to Morningstar analyst Kristoffer Inton

Ruth Saldanha 5 March, 2019 | 6:00PM

The latest development in Barrick Gold Corporation’s (ABX) bid to acquire Newmont Mining Corporation (NEM) was largely expected and unsurprising. The unsolicited advance was rejected on March 4 by Newmont’s board of directors.

“Our thorough review of Barrick’s unsolicited proposal and its associated risks has reaffirmed our conclusion that the combination of Newmont and Goldcorp (G) represents the best opportunity to create value for Newmont’s shareholders and deliver industry-leading returns for decades to come,” said Gary Goldberg, Newmont’s CEO, in a press release.

Newmont argues that Barrick’s proposal does not constitute a “Newmont Superior Proposal” as defined under its merger agreement with Goldcorp. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Barrick Gold Corp34.72 CAD-0.43
Newmont Corp62.99 USD0.19

About Author

Ruth Saldanha

Ruth Saldanha  Ruth Saldanha is Senior Editor at Morningstar.ca

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