OTTAWA: Canadian miner Barrick Gold on Monday launched a nearly $18 billion hostile merger offer for American rival Newmont to create a global gold juggernaut.

Together the world’s two biggest miners in the sector would form “the world’s best gold company,” according to a statement, which would be worth an estimated $42 billion, dwarfing its nearest rival.

The tie-up also would top a previous record deal set only last month when Newmont made a move for another Canadian company, Goldcorp, to leapfrog Barrick as top gold miner after years of waning investor interest due to lackluster bullion prices.

Newmont, however, pushed back against Barrick’s offer, saying it is focused on closing its $10 billion Goldcorp acquisition in the second quarter.

Barrick President and CEO Mark Bristow called the proposal “logical and long overdue.”

“A combination of Barrick and Newmont would represent a unique, once in a lifetime opportunity to create the unrivalled leader in the gold sector and generate significant — and in our industry, unparalleled — value creation for our shareholders,” Bristow said in a letter to Newmont’s board of directors.—AFP