ELKO, Nev. (AP) — Barrick Gold is dropping its takeover bid for Newmont Mining, as the gold companies instead form a joint venture to combine their Nevada mining operations.
Last month Barrick Gold Corp. offered to acquire Newmont Mining Corp. for about $18 billion in stock.
The joint venture will include the companies' assets and reserves in Nevada. It doesn't include Barrick's Fourmile project and Newmont's Fiberline and Mike deposits, pending the determination of their commercial feasibility.
The companies estimate they'll achieve $500 million in average pretax savings a year in the first five full years of the combination.
The venture, which is expected to be completed in the coming months, still needs regulatory approval.
Shares of Barrick Gold rose more than 2 percent in Monday premarket trading, while Newmont's stock was flat.
