Randgold Resources bought by Barrick Gold to create $18 billion company

Africa-focused gold producer Randgold Resources has agreed to be bought out by Barrick Gold Corp in a merger deal that will create a US$18 billion gold company – the world’s largest.

Under the terms of the mega-deal, Randgold shareholders will own about 33.4% of the merged company, with Barrick shareholders taking up the remaining 66.6%.

Randgold’s long-term chief executive Mark Bristow will retain that same role in the new merged company while Barrick’s John Thornton will become the executive chairman.

“The boards of Barrick and Randgold believe that the merger will create an industry-leading gold company with the greatest concentration of Tier One Gold Assets in the industry, the lowest total cash cost position among senior gold peers,” said the companies in a joint statement.

Randgold was established in 1995 by South African geologist Mark Bristow, who turned the company into one of the best performing stocks on the FTSE 100 in London. Randgold will de-list from the LSE, with the merged company maintaining Barrick’s listings on the TSX and NYSE.

@ABNetworkOnline