On September 24, at the Denver Gold Forum in Colorado, USA, John Thornton, Chairman of Barrick, and Mark Bristow, CEO of Randgold, announced the merger of their companies. The proposed merger will be voted by shareholders in November.
Historically, whenever a senior gold company (Barrick) has taken over a smaller rival (Randgold), it has paid a premium, usually in the 20% to 50% range. Barrick-Randgold is the first major deal we know of in the gold sector without a premium.
Will Barrick prove to be too large and unwieldy? Or will a new industry leader emerge? It will probably take several years and a couple of setbacks, but we believe Messrs. Thornton and Bristow have the conviction, drive, assets, and people to make it work.
Performance of Rangold Resources vs. Gold Bullion vs. Barrick Gold
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