Friday, 23rd December 2005 (3182 views)

Two of Canada's largest mining companies have agreed to form the largest mining firm in the world.

Vancouver's Placer Dome agreed to a takeover by Barrick Gold Corp, in a deal worth $10.4 billion. The firms were previously the sixth and third largest gold miners in the world.

Barrick's approach for Placer was originally hostile, with Placer trying to fend off Barrick for two months. But the firms came to a friendly agreement on Thursday, with an offer £1.2 billion more than the original bid.

President of Barrick Greg Wilkins said: "We are very excited about the coming together of two great gold mining companies. We can now move forward and deliver value - together - from our assets, people and projects.

"As a result of the friendly transaction, and with the support of Placer Dome's shareholders, we will be implementing an integration plan in order to capture the substantial synergies as soon as possible and achieve value creation for all shareholders."

Others can bid for Placer until January 19th, although Associated Press reported that the deal was likely to go through.

 

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