The mining company from Canada called Barrick Gold is taking over Randgold Resources which will make them the biggest gold miners in the world with a total value of $18bn. Both the companies have the ownership of some of the valuable gold mines across the world and engaged in manufacturing about 6.6 ounces of the yellow metal per year. The share owners of the company Barrick Gold will get an automatic ownership to 2/3rd of the total value of the two firms. The remaining share will be owned by Randgold. Both the companies have seen a downfall ion their share prices in the present year by a ratio of 30%. The companies were facing the wrath of decrease in prices of gold and speculation over their strategic planning.
The CEO of Randgold said that the gold industry has always been looked down because of a lack of long term planning, uncharted growth patterns and very less returns on the capital investment. He said that this merger will bring a radical change in the working patterns of the industry. They are aiming to deliver returns based on sectors and they will be taking all the measures required to fulfill this criteria. He added that the company is prepared to take strong decisions and determined to change the ways of the trade. The gold prices have decreased by 8% in the present year and this is the reason for all the producers have come under pressure.
The two companies are hopeful that this merger will help in decreasing the expenses and ensure more profits. Analysts have described the combination as complementing to each other. Barrick has its gold fields in all stable areas whereas Randgold’s mines are situated in more risk prone zones. Together they will make the perfect pair. the new firm will be keeping the name of Barrick and continue to be listed in the trade markets of Toronto and New York. Randgold will be removed from London’s market listings.
Before turning out to be a full-time writer and editor, James Tidwell was a blogger who wrote his outlooks and viewpoints relating to Entertainment and Sports. Owing to his interest and absolute fineness of playing with world beautifully, he was appointed to dabble in Entertainment and Sports world.