Thursday, 12th January 2006 (2946 views)

Barrick Gold is all set to become the world's largest gold miner after clearing the final hurdle to buy rival Placer Dome.

The South African Competition Tribunal gave Barrick the green light today (January 12th), clearing the path for the $10.4 billion union.

Canada-based Barrick is currently the world's third biggest producer, with compatriot Placer Dome currently lying in sixth place.

The merger will catapult Barrick into the number one spot, ahead of Nemonth and AngloGold Ashanti.

Barrick had previously received antitrust clearance from the Canadian, US, Australian, German and Swiss authorities after the duo reached an agreement at the end of 2005.

Placer Dome's board initially resisted Barrick's advances but succumbed in December when its larger rival upped its bid.

The deal now awaits shareholder approval, with the requirement that two-thirds of Placer's shares be tendered by January 19th.

As part of the deal, fourth largest Canadian gold producer Goldcorp will pay £1.7 billion cash for Placer's stakes in several gold mines in Ontario and assets in Chile and the Dominican Republic.

 

« Back to the stories

 

The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.