In certain cases, all that glitters is gold. An industry that was quickly losing its shine has got back some of its sparkle with recent mergers and acquisitions. Recently activity in the gold mining sector in Canada has created some excitement. Newmont Mining Corporation scooped up Goldcorp Inc. creating the world's biggest miners of gold, while Barrick Gold Corp. acquired Randgold Resources Ltd.
The newly-merged Newmont and Goldcorp. said they will sell up to US$1.5 billion in assets in the course of two years. Barrick, on the other hand, says it will steer its focus on assets that generate cash for the company. Selling assets, though, may not be so easy since the bulk of Barrick's mines are involved in joint ventures and ongoing partnerships.
Experts and those who watch these types of markets are feeling positive about these new changes, indicating that the market was saturated with too many mining companies. Combining forces is expected to actually increase production levels. And apparently these latest mergers and acquisitions are only the beginning in what watchers believe will be a continuation of a mergers and acquisitions cycle moving forward in 2019.
There is much wheeling and dealing in the world of mergers and acquisitions in Canada. In such a complex realm, the acumen of a business lawyer may prove its worth in gold. Before venturing into this area of business, a lawyer's expertise and guidance may help an entrepreneur to make wise decisions that could affect a business for years to come.