Barrick Gold Rises Midday as it Withdraws Newmont Bid
Investing.com - Mining stocks were mixed midday after Barrick Gold and Newmont announced a joint venture as Barrick ended a hostile bid to buy its rival.
The collaboration will gain a projected total of $5 billion pre-tax in synergies over 20 years, the two companies said in a press release.
“We are finally taking down the fences to operate Nevada as a single entity in order to deliver full value to both sets of shareholders, as well as to all our stakeholders in the state, by securing the long-term future of gold mining in Nevada,” Barrick President and CEO Mark Bristow said.
Barrick Gold (NYSE:GOLD) was up 1.3% midday, while Newmont Mining (NYSE:NEM) declined 2% and Goldcorp (NYSE:GG), which is scheduled to merge with Newmont, rose 0.6%.
The S&P metals and mining select industry ETF gained 0.7%.
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