FLASH: World’s Gold miners seek merger opportunities
$GLD, $GOLD, $CS
A move by the world’s biggest gold miners to get bigger adding new vigor to an industry that failed to inspire investor support in Y 2018.
The mega-merger mania now under way for Newmont Mining Corp., Barrick Gold (NYSE:GOLD) and Goldcorp will result in some of their assets being sold, helping to diversify portfolios for other miners and boosting the interest of investors.
“This is a competitive marketplace in terms of attracting capital, and you have to make a decision at some point,” an analyst at Macquarie Capital Markets, said in a telephone interview Friday.
A January note by Credit Suisse Group analysts speculateed that Iamgold Corp. and Yamana Gold Inc. could pursue mergers for critical mass, as well as B2Gold Corp.
Spokesperons for the 3 mining companies did not respond to phone call requests for comment.
As the giants make plans to streamline their post-deal portfolios, mega-mergers are creating a once-in-a-cycle opportunity to acquire “company-making assets,” some of which will likely be funded by private equity.
“A number of private equity funds are in the process of raising billions of dollars in capital to do that type of work and looking for ‘partners’ in the gold mining dance,
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