Bid to be the world's biggest gold firm

Harmony Gold Mining Co, South African gold firm, has made a $8.2 billion bid to acquire its much bigger rival -- Gold Fields. If the acquisition or the merger goes through, it would create the world's largest gold producing company.

Harmony's aggressive bid has the backing of many of its shareholders, notable amongst whom is Russia's Norilsk Nickel. Norilsk has a 20 per cent holding in Gold Fields, the world's fourth largest producer of gold.

Harmony said the offer valued Gold Fields at 52.9 billionn rand or $8.24 billion).

Meanwhile, reports said that Gold Fields' plans for a merger with Canada's Iamgold received a jolt when Norilsk did not support the deal.

Last year, AngloGold merged with Ghana's Ashanti to create AngloGold Ashanti, which is now the world's largest gold company.

South Africa is the world's largest producer of gold.