Barrick Gold Sent Revised Terms to Newmont Mining
Barrick Sent Email to Newmont Management Tuesday But Did Not Receive Response
Barrick Gold Corp. ABX.T +1.14% has sent an email outlining revised terms to Newmont Mining Corp. NEM +3.51% for a merger between the two gold mining giants that stalled last week, according to people familiar with the matter.
The two sides had disagreed over plans for a spinoff of some assets and have been in informal contact in recent days to iron out their differences, according to these people.
A deal is far from certain. For a start, Toronto-based Barrick has yet to receive a response from its U.S. rival after the email was sent to Newmont's senior management on Tuesday, these people said.
Formal high-level talks weren't expected to continue until at least after Newmont's annual general meeting, which happened Wednesday, according to people familiar with the matter.
Merging the companies, which have a combined market value of more than $30 billion, would create a natural-resources giant with mines ranging from Indonesia to Africa and throughout North and South America.
The two sides have tried to come together at least three times before, leading some analysts to question whether they will complete a deal this time.
On Tuesday, Barrick Chairman Peter Munk said that it was "difficult to find a reason" for his company not to merge with Newmont in a deal that he said would provide cost savings given the proximity of the companies' mines in Nevada.
In coming together, both sides are looking at savings of $1 billion, people familiar with the matter said. Most analysts believe that would be closer to $500 million.
The two sides had clashed over how specific they should be, when announcing a deal, over which assets should go into the new spinoff, people familiar with the matter said.