Barrick Gold shareholders will own approximately 66.6% of the combined new company resulting from the merger, and Randgold Resources shareholders will receive the remaining 33.4%.
Merger Justification
Barrick Gold (ABX) and Randgold Resources (GOLD) announced today that they have agreed to an all-share merger that will create the most prominent gold company in the world. For more information, please read Randgold Resources' press release here.
Barrick Gold shareholders will own approximately 66.6% of the combined new company resulting from the merger, and Randgold Resources shareholders will receive the remaining 33.4%.
Under the terms of the Merger, each Randgold Shareholder will receive: 6.1280 New Barrick Shares for each Randgold Share
Barrick Gold Executive Chairman John L. Thornton noted:
The combination of Barrick and Randgold will create a new champion for value creation in the gold mining industry, bringing together the world's largest collection of tier one gold assets, with a proven management team that has consistently delivered among the best shareholder returns in the gold sector over the past decade,
After the merger is closed, Barrick Gold said that the new company would own five of the world's top 10 tier-one gold assets with two potential tier-one gold projects under development or expansion.
The companies said that the merger is subject to approval by both sets of shareholders, regulatory approvals, and other customary closing conditions. The merger is anticipated to close by Q1 2019.
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