The Globe and Mail reports in its Friday edition that in 2018 Goldcorp boss David Garofalo had lost the confidence of shareholders. The Globe's Tim Kiladze writes that Goldcorp's stock fell by more than half, prompting Newmont Mining to step up this week with a deal to buy the company for $10-billion (U.S.). It is not certain whether Mr. Garofalo will have a job at the merged company. What is clear is that another big Canadian-based miner is falling into foreign hands. This deal comes weeks after Barrick Gold's Toronto head office was gutted by layoffs, because of its merger with Randgold Resources. At Barrick, Randgold's former management is now running the show -- from the Channel Islands. The optics of this second takeover are not good, and Newmont knows it. In its announcement, the miner spelled out the deal's benefits to Canada. Newmont is trying to smooth over Canadian anxieties about watching Barrick and Goldcorp fall under foreign control.
Mr. Kiladze says if those companies had been better run, they would be the ones consolidating the gold sector right now. Instead, they both blew it. There are times when a country should stand up for companies targeted by foreigners, but not for Barrick and Goldcorp.
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