Canada’s Kirkland Lake Gold agreed to buy Detour Gold for CA$4.9 billion (US$3.7 billion), furthering an M&A spree that’s swept the gold mining industry.
With an all-share deal, Kirkland will take advantage of a record stock price to acquire the company, which operates the Detour Lake mine in northeastern Ontario.
There’s been constant speculation about gold mining acquisitions after huge deals rocked the industry in the last year: Newmont Mining’s acquisition of Goldcorp and Barrick Gold’s takeover of Randgold Resources. The two combinations created companies that dwarf the rest of the industry and mean that smaller miners feel the need to consolidate if they’re going to stay relevant to shareholders.
“The addition of Detour Lake provides an opportunity to add a third cornerstone asset that is located in our backyard,” Tony Makuch, chief executive officer of Kirkland, said in a statement.
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