Randgold Resources (LON: RRS) and Barrick Gold Corporation (NYSE: ABX) confirmed on Monday an $18 billion (£14 billion) merger.

The gold mining companies will combine to create the world’s largest group, with Barrick shareholders owning 66.6 percent of the new group and Randgold shareholders owning 33.4 percent.

Randgold Resources is based in London and operates mines in Africa whilst Barrick, based in Canada, has mines in the US, Peru, Chile and Argentina.

Mark Bristow, the chief executive officer of Randgold, said: “Our industry has been criticised for its short-term focus, undisciplined growth and poor returns on invested capital.”

“The merged company will be very different. Its goal will be to deliver sector leading returns, and in order to achieve this, we will need to take a very critical view of our asset base and how we run our business, and be prepared to make tough decisions.”

“By employing a strategy similar to the one that proved very successful at Randgold, but on a larger scale, the New Barrick Group will leverage some of the world’s best mines and talent to create real value for all stakeholders.”

John L. Thornton, executive chairman of Barrick, said: “Our overriding measure of success will be the returns we generate and not the number of ounces we produce, balancing boldness and prudence to deliver consistent and growing returns to our fellow owners, a truly simple but radical and achievable concept.”

“There are no premiums in the merger because we strongly believe in the opportunity to add significant value for our shareholders from the disciplined management of our combined asset base and a focus on truly profitable growth.”

The new group will be listed in Toronto and New York, whilst being delisted from the London Stock Exchange.

As part of the deal, China’s Shandong Gold (SHA: 600547) has agreed to buy $300 million of shares in Barrick.