Arrow-right Camera

The Spokesman-Review Newspaper The Spokesman-Review

Tuesday, March 26, 2019  Spokane, Washington  Est. May 19, 1883
Cloudy 45° Cloudy
News >  Business

Barrick Gold drops takeover bid for Newmont Mining

UPDATED: Mon., March 11, 2019, 4:59 p.m.

Barrick Gold executive chairman of the board John L. Thornton speaks during the company's annual general meeting in Toronto on April 25, 2017. Barrick Gold has announced it is dropping its takeover bid for Newmont Mining. (Associated Press)
Barrick Gold executive chairman of the board John L. Thornton speaks during the company's annual general meeting in Toronto on April 25, 2017. Barrick Gold has announced it is dropping its takeover bid for Newmont Mining. (Associated Press)
Associated Press

ELKO, Nev. – Barrick Gold is dropping its takeover bid for Newmont Mining, as the gold companies instead form a joint venture to combine their Nevada mining operations.

Last month, Barrick Gold Corp. offered to acquire Newmont Mining Corp. for about $18 billion in stock.

The joint venture will include the companies’ assets and reserves in Nevada. It doesn’t include Barrick’s Fourmile project and Newmont’s Fiberline and Mike deposits, pending the determination of their commercial feasibility.

The companies estimate they’ll achieve $500 million in average pretax savings a year in the first five full years of the combination.

The venture, which is expected to be completed in the coming months, still needs regulatory approval.

Shares of Barrick Gold rose more than 2 percent in Monday premarket trading, while Newmont’s stock was flat.

Subscribe to the Morning Review newsletter

Get the day’s top headlines delivered to your inbox every morning by subscribing to our newsletter.

You have been successfully subscribed!
There was a problem subscribing you to the newsletter. Double check your email and try again, or email webteam@spokesman.com