The Canadian gold producer Barrick Gold withdraws his hostile takeover bid on American counterpart Newmont Mining. The two companies will now join forces in their extensive mining activities in the US state of Nevada.
Barrick had put a hostile bid of nearly $ 18 billion on the table at the end of February. Newmont refused this because the company sees more salvation in its merger plan with the Canadian Goldcorp. Newmont did indicate that it was open to cooperation in Nevada, where the mining company has substantial gold operations, just like Barrick.
By working together, companies can save a lot of costs there. Barrick gets the largest share in that company, which in one fell swoop becomes the largest gold digger in the world.
Last week consultations were held during a dinner by the executives of both companies about a possible joint venture in Nevada that was constructive. These negotiations are now continuing.