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Monday, 18th September 2006 (4594 views)

According to a Mineweb report, a merger of two of the world's largest gold corporations, AngloGold Ashanti and Gold Fields could be possible in the future.

A deal to marry the two companies would bolster both companies that will make up the future corporation, and potentially create the world's largest gold miner in the process.

The latest development for the future of the gold market's progress stems from the need to cut costs and boost profits and any merger between the two is attractive to investors as it would consolidate reserves, reduce operations costs and increase the total output of the ore bodies within Gold Fields' and AngloGold's control.

Analysts have suggested any merger would more likely be a friendly "meeting of minds", rather than a hostile acquisition, and this would further promote the growing investment potential and perception of stability that surrounds South African gold.

The news is by no means a direct suggestion that a merger is imminent, the report concludes, but is an indication of the direction in which the gold markets, both core processes such as mining and investment propositions, are progressing.

 

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