NEW YORK (AP) — Barrick Gold will try to acquire Newmont Mining Corp. in an approximately $18 billion all-stock deal that would create a mining behemoth worth about $42 billion.
Newmont, based in Colorado, has shunned the Canadian miner so far, and the latest brush between the fierce rivals is likely to become hostile.
In acquiring Newmont, the largest U.S. miner, Barrick would create a mining company that could be four times the size of its next closest rival.
Newmont stockholders, under the offer made on Monday, would receive 2.5694 Barrick shares for each share they own.
Barrick shareholders would own about 55.9 percent of the combined business, with Newmont shareholders owning approximately 44.1 percent.
Barrick President and CEO Mark Bristow said that the two companies have highly complementary assets in Nevada, which includes Barrick's mineral endowments and Newmont's processing plants and infrastructure.
Combining the companies, Barrick said, will create $7 billion in lowered costs.
Barrick kicked off a surge in gold mining consolidation last month when it acquired Randgold Resources for more than $6 billion.
Miners are consolidating as gold becomes more expensive to procure.
Newmont launched its own takeover bid with a $10 billion offer for Canada's Goldcorp.
On Monday, Barrick said Newmont should drop that deal.
Newmont defended offer in a regulatory filing this week, saying that the combined company would have the largest gold reserves and resources in the gold sector and provide $265 million in annual savings.
Newmont's stock rose 1.4 percent before the market open.