Mega Gold Merger Breaks Down

April 21, 2014 7:01 AM EDT Send to a Friend

Shares of Barrick Gold Corp. (NYSE: ABX), Newmont Mining Corp. (NYSE: NEM) and other gold mining stocks are on watch Monday following reports Friday from the Wall Street Journal that Barrick and Newmont recently terminated merger discussions after being locked in advanced talks.

A deal was expected to be announced as early as Tuesday before talks broke down. Sources indicated the two have talked about a merger a number of times in the past and may again reconsider the deal.

The latest discussions were promoted by the slide in gold over the past year as the Fed moves to end QE after pumping the system with excess capital for years following the 'great recession.'

While a deal could not be reached, the fact that the two were near a deal could spark talk of further consolidation in the sector. In addition to Barrick and Newmont, speculators will be looking at other gold mining stocks including: Goldcorp Inc. (NYSE: GG), AngloGold Ashanti Ltd. (NYSE: AU), Agnico Eagle Mines Limited (NYSE: AEM), Eldorado Gold Corp. (NYSE: EGO), Kinross Gold Corporation (NYSE: KGC) and Yamana Gold, Inc. (NYSE: AUY).

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