Merger to bubble: Beament

Bill Beament and Raleigh Finlayson got a rock star reception from delegates at the Diggers & Dealers forum today as the positive reaction to the proposed merger of Northern Star Resources and Saracen Mineral Holdings dominated the opening session on day one of the event.

Mr Beament, as Northern Star’s executive chairman, and Mr Finlayson, as managing director of Saracen, shared the stage at the forum in a rare double act that reflected the planned, but yet to be completed, merger of equals.

Neither man said anything new about the deal, as was to be expected because of the legal process through which it has to pass.

But both spoke glowingly of the cost savings of up to $2 billion the merger is expected to generate over the next decade.

“This is a merger that bubbles,” Mr Beament said.

The deal will create a business that will rank as the world’s ninth biggest gold producer, with all of its assets in first-world jurisdictions, mainly Australia and North America.

Investors, however, have cooled slightly to the impact of the merger after last week’s announcement, which led to both companies enjoying a sharp share price boost.

Both Northern Star and Saracen faded after a strong opening in today’s trading

Northern Star eased from opening sales at $16.42 to trade around $16.11, while Saracen slipped from $6.15 to $6.02.