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South Africa clears Randgold/Barrick merger

Randgold Resources and Barrick Gold have received clearance from the South African Competition Tribunal for their proposed merger.
South Africa clears Randgold/Barrick merger South Africa clears Randgold/Barrick merger South Africa clears Randgold/Barrick merger South Africa clears Randgold/Barrick merger South Africa clears Randgold/Barrick merger

The merger between Randgold Resources and Barrick has been approved in South Africa

Staff reporter

The unconditional clearance was not a surprise from the tribunal that in the past has okayed large deals such as Glencore's takeover of Xstrata in 2013, which allowed the former to dominate the South African thermal coal market.

The companies still require shareholder approval via a November 7 vote and the Royal Court of Jersey to sanction of the scheme, which they are seeking at a November 17 hearing.

The companies expect the merger to be effective January 1, 2019.

The clearance comes a day after Randgold announced it would up its 2018 dividend by 34.5% and Barrick would give 40% more to shareholders.

Randgold's shares (LSE:RRS) were up 2.28% Thursday to £62.90 (US$81.28) per share, while Barrick's (NYSE:ABX) rose 3.51% to US$12.99/share.