Newmont Mining will buy rival Goldcorp in a deal valued at $10 billion, creating the world’s largest gold miner and cementing a return of M&A to the industry.
The transaction comes just three months after Barrick Gold’s move to buy Randgold Resources in a $5.4 billion transaction, which instantly spurred speculation that rivals would have to respond.
The two huge gold deals have the potential to spark investor interest after the industry lost favor following years of lackluster bullion prices, bad investments and disastrous deals. Just two weeks ago, Mark Bristow, the new chief executive officer of Barrick, said the industry is heading for irrelevance unless there are major changes.
