Toronto-based Barrick Gold Corp. abandoned its $18 billion hostile takeover of Newmont Mining Corp. in March 2019, opting instead for a Nevada joint venture to consolidate operations and achieve $5 billion in cost savings over two decades. The agreement, finalized Monday, establishes a 61.5% Barrick-controlled partnership in Nevada’s gold-rich region, where both companies operate mines producing over 4 million ounces annually.
The deal followed months of public tension between the rivals, including CEO Mark Bristow’s February 2019 characterization of Newmont’s Gary Goldberg as a "loser" and Goldberg’s criticism of Bristow’s leadership at Randgold, which Barrick acquired in January 2019. Despite the feud, both executives traveled to Nevada to announce the collaboration, with Barrick withdrawing shareholder proposals against Newmont’s upcoming annual meeting.
Newmont shares fell 2.3% in New York trading, while Barrick rose 0.9% on the NYSE and 1.1% on the Toronto Stock Exchange. The joint venture allows Newmont to proceed with its $5.3 billion acquisition of Canada’s Goldcorp Inc., which would make it the world’s largest gold producer.
Key terms include Barrick’s operational control of Nevada mines and Newmont’s 45% stake in the venture. Both companies emphasized the deal’s potential to create value, with Newmont COO Tom Palmer stating, "The whole is going to be worth a lot more than the sum of its parts." The agreement comes amid renewed activity in gold industry mergers, following years of investor skepticism.
