Randgold/Barrick merger follows extensive industry dialogue with rivals - source

24 September 2018 - 05:14 pm UTC

Author(s): by Patrick Harris

The merger of Randgold Resources [LON:RRS] and Barrick Gold [NYSE/TSX:ABX] followed extensive tie-up discussions with gold mining peers, a source familiar with the situation said. Randgold discussed transformational combinations with its sector peers prior to announcing the deal with Barrick, the source said, downplaying the emergence of a rival bidder.

A sector banker agreed that a rival bid is unlikely given Randgold’s history of exploring options.

The company has sought to introduce fresh ideas and innovation into a languid industry, the source said, and wall crossed these ideas with peers such as Goldcorp [TSX:G], Kinross [TSX:K] and Newmont [NYSE:NEM].

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