Barrick CEO says he is not interested in acquisition of Teck
Aaron Regent, president and ceo is photographed during the Barrick Gold Corporation annual general meeting held April 27 2011 at the Toronto Metro Convention centre in Toronto.(Fred Lum/The Globe and Mail)
Barrick CEO Mark Bristow on Tuesday put an end to the rumours that Barrick Gold Corporation and Teck Resources were in talks to merge
Barrick CEO Mark Bristow on Tuesday put an end to the rumours that Barrick Gold Corporation and Teck Resources were in talks to merge, which would result in a mining giant with a market value greater than $50 billion.
Expressing his concerns, Bristow said, “We don’t think we bring any synergies to Teck Resources,” and he also seemed to be worried over Teck’s high debt on the balance sheet. Bristow also has prioritized other plans including focus on organic growth along with expanding its operations in Americas & Africa and increase its production of gold and copper.
Bristow’s statement raised mixed reactions, leaving some analysts shocked as the possible merger would have created a powerful mining company while others welcomed his decision to focus on Barrick’s own growth. Bristow’s comments come after Teck’s rejection of Glencore’s unsolicited $23 billion offer, which Bristow believes makes more sense, as it carries a lot of synergies — including coal and copper assets in Chile and Glencore could handle the debt of Teck Resources.
Established in 1983 and headquartered in Canada, Barrick Gold is one of the top 10 mining companies in the world. It is the largest mining company in Canada, with presence in 18 countries. Barrick Gold currently trades at $19.98 with a market cap of $35 billion.
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