Monday, 18th October 2004 (2667 views)

South Africa's Gold Fields is expected to announce a multi-billion dollar merger today with one its biggest rivals.

The move is part of a major change in the area's gold mining industry and could lead to the creation of the world's largest producer of the precious metal, according to the Guardian.

It is thought that Gold Field has been pushed into a deal by Russian metals group Norilsk Nickel, which purchased a 20 per cent stake in the firm in the spring.

Banking sources have suggested that they think Harmony is the most likely partner for the deal, although the deal would have a number of conditions attached to it.

Gold Fields also has operations in Ghana and Australia, whilst Harmony is the largest domestic producer in South Africa.

The South African government has recently become more relaxed with regards to precious metal firm mergers.

 

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