Yahoo Finance 
Newmont Mining Shares Surge After Merger Talks Fail
The end of merger talks between Barrick Gold Corp. (ABX) and Newmont Mining Corp. (NEM), the world's largest gold-mining companies, seems to have investors in the latter pleased, as its shares surged Monday morning.
The companies had planned to announce this week an agreement on an all-stock merger deal. But plans hit a snag late last week when Barrick and Newmont failed to reach an agreement on which mines to include in a proposed spin-off of Australian and New Zealand assets before the deadline. The companies instead agreed to call off the plan for now, leaving open the possibility that a deal could be revived.
ALSO READ: The 10 Fastest Rising Food Prices
Barrick and Newmont operate on five continents and have a combined market value of near $33 billion. But the price of gold tumbled 28% in 2013, the most in 30 years, which squeezed profits and prompted billions in write-downs by producers. However, some analysts now predict rising demand in China and India.
These two companies have attempted to merge a number of times in the past, and people familiar with the matter indicated they still would like to get a deal done.
ALSO READ: America's Fastest Growing Cities
Newmont shares rose more than 6.5% to $25.34 shortly after the opening bell. Its 52-week range is $20.79 to $35.44. Barrick shares were trading down about 2.6% in morning trading, at $17.43 in a 52-week range of $13.43 to $21.70.
READ ALSO: Nine Countries That Hate America Most
Related Articles
