How Will the Current M&A Frenzy in the Mining Industry Impact Investors?
(Note: related companies are at base of the story and all the
sources listed in the “Balanced” section)
On
February 25, Barrick Gold announced a hostile $17.8 billion bid for Newmont
Mining. This follows Barrick’s purchase
of Randgold Resources which closed in January.
Newmont is in the process of acquiring Goldcorp Inc. and Barrick’s offer
is contingent on Newmont abandoning its plans to acquire Goldcorp. These transactions follow several other
recent transactions in the mining space.
Will there be more consolidation and what are the implications for precious
metals investors?