By Tim Maverick
Wall Street Daily
Merger mania is returning to the beaten-down materials sector. Already in 2014, we’ve seen $102.8-billion worth of announced mergers in the sector, according to S&P Capital IQ. That’s a 210% increase, compared to the same period in 2013!
The gold sector is also catching the merger fever. Most eye-catching, there’s the possible $30-billion merger between the world’s two largest gold producers, Barrick Gold (ABX) and Newmont Mining (NEM).
Combined, the two companies last year produced about 12 million ounces of gold — 12% of annual global gold output. That’s about three times greater than the No. 3 producer, AngloGold Ashanti (AU).