Newmont Mining Corp. has turned down Barrick Gold Corp.'s $18 billion acquisition proposal, instead suggesting a joint venture in Nevada that would merge their gold operations in the nation's primary production region. The decision comes amid ongoing negotiations over control of combined assets and differing valuation approaches.
Newmont's board criticized Barrick's all-stock offer as undervaluing shareholders, noting it priced shares at $33 each—a $3.48 discount to the company's February 22 closing price. Barrick CEO Mark Bristow dismissed Newmont's joint venture terms as "stale and convoluted," arguing separate management would better optimize Nevada operations. The proposed structure would grant Barrick a 55% stake in the combined entity with equal management representation, a framework Bristow called impractical.
The standoff reflects broader industry competition as both firms seek to strengthen gold reserves amid rising prices. Newmont's shares fell 6% following the rejection, while Barrick gained 1% on Toronto's stock exchange. The companies remain divided over operational integration, with Newmont emphasizing its planned $5.3 billion acquisition of Goldcorp Inc. as a more valuable path.
Reuters reported that Newmont operates 19 Nevada mines adjacent to Barrick's facilities. Bristow previously criticized the lack of collaboration between the companies, calling it a financial inefficiency. Neither side has formally evaluated the venture's financials, relying instead on public data for valuations. The dispute highlights tensions in the mining sector as firms compete for dominance in global gold production.
