London — Canadian Barrick Gold Corp, which recently merged with Randgold Resources, said Friday it was looking at the potential of joining forces with Newmont, another gold industry major.
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Barrick said it has "reviewed the opportunity to merge with Newmont in an all-share nil premium transaction. No decision has been taken at this time."
The news came hot on the heels of Newmont merging with smaller Canadian peer Goldcorp in a stock-for-stock transaction valued at $10 billion, making the enlarged company the largest gold miner in the world.
The industry has been coping with shrinking margins and rising overheads.
A fund manager said the M&A activity was simply a race for reserves as gold mining becomes increasingly difficult and ore bodies shrink.
Speaking at a industry event earlier this year, Barrick CEO Mark Bristow said he saw more M&A happening.
-- Ben Kilbey, firstname.lastname@example.org
-- Edited by Daniel Lalor, email@example.com