SOUTH Africa’s Competition Tribunal has given its unconditional clearance for the merger of Randgold Resources with Barrick Gold, the companies said today.
The key remaining conditions ahead of completing the merger, which is planned to be effective January 1, are obtaining the support of shareholders from both companies, and the sanction of the court in Jersey, where Randgold is registered.
On November 5, Randgold is expected to adjourn its extraordinary general meeting with shareholders to November 7 – the new date for shareholders to vote on the merger. This is so it can accommodate an increase in its previously stated dividend level.
Barrick also increased its planned dividend in a step the market interpreted as a sweetener to decisively get the merger over the line.
There was already high confidence it would happen. Increasing the dividends also sets the tone for New Barrick, the name given for the merged entity.
