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.
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.
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