Newmont Mining Shares Surge After Merger Talks Fail
The end of merger talks between Barrick Gold and Newmont Mining, the world's biggest gold-mining companies, seems to have investors in the latter pleased, as its shares surged Monday morning.
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The end of merger talks between Barrick Gold Corp. (NYSE: ABX) and Newmont Mining Corp. (NYSE: NEM), the world’s largest gold-mining companies, seems to have investors in the latter pleased, as its shares surged Monday morning.
The companies had planned to announce this week an agreement on an all-stock merger deal. But plans hit a snag late last week when Barrick and Newmont failed to reach an agreement on which mines to include in a proposed spin-off of Australian and New Zealand assets before the deadline. The companies instead agreed to call off the plan for now, leaving open the possibility that a deal could be revived.
Barrick and Newmont operate on five continents and have a combined market value of near $33 billion. But the price of gold tumbled 28% in 2013, the most in 30 years, which squeezed profits and prompted billions in write-downs by producers. However, some analysts now predict rising demand in China and India.
These two companies have attempted to merge a number of times in the past, and people familiar with the matter indicated they still would like to get a deal done.
Newmont shares rose more than 6.5% to $25.34 shortly after the opening bell. Its 52-week range is $20.79 to $35.44. Barrick shares were trading down about 2.6% in morning trading, at $17.43 in a 52-week range of $13.43 to $21.70.
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Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.
Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.
Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.
Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.
