JSE- and NYSE-listed Gold Fields has denied that it wants to merge with its competitor AngloGold Ashanti, stating that an article published by Bloomberg last week was factually incorrect.
Bloomberg quoted "a person familiar with the matter" as saying Gold Fields wanted to merge with AngloGold as the mining industry is experiencing a wave of consolidation.
If a merger were to happen, it would bring together two miners with a combined market value of $8-billion. The enlarged company could produce about six-million ounces of gold a year, closing the gap on Newmont Mining Corporation and Barrick Gold Group, which have both entered into megadeals in recent months.
Bloomberg reported that the companies had discussed consolidation in September 2006, and that Gold Fields CEO Nick Holland had noted in April 2010 that the company was open to consolidation with AngloGold.
AngloGold did not comment on Bloomberg’s article.