Barrick/Randgold deal creates gold giant – The Wall Street Journal
DUBLIN – The $6 billion, all-share merger between Barrick Gold and Randgold Resources will create a global gold giant that will dominate the African gold industry. Gold prices have been fairly range-bound for the last few years, making cost management a top priority for global gold-diggers. By merging, Barrick and Randgold are clearly hoping to capture cost savings and efficiencies to drive bottom-line growth. More importantly, the deal will give Barrick access to Randgold's Africa expertise and experience – Barrick has struggled on the continent. It's hard to say what the implications of the deal are for South Africa. Randgold is focused on west and central Africa, while Barrick has primarily north and south American assets. But the merger activity may be a sign of renewed activity in the gold sector, which has languished over the last few years. – Felicity Duncan
By Scott Patterson
(The Wall Street Journal) Barrick Gold Corp.agreed to buy Randgold Resources Ltd.for $6 billion in an all-share merger that will solidify Barrick as the world's largest gold company by production, with a dominant position in Africa.
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