Egypt Daily News – AngloGoldAshanti has announced its agreement to acquire Centamin in a transaction valued at approximately £1.9 billion ($2.5 billion). This acquisition comes as high gold prices incentivize mining companies to expand their operations.
As part of the deal, AngloGoldAshanti will gain control of the Sukari gold mine in Egypt, which is recognized as one of the world’s premier gold mines and currently does not belong to any major producer.
AngloGoldAshanti stated that the cash and stock offer represents a 37% premium over Centamin’s share price as of September 9. Following the announcement, shares of AngloGold fell by 9.8% in Johannesburg—its largest drop in three years—while Centamin’s shares surged by 25% in London.
The acquisition of Centamin is indicative of a broader trend in the gold sector, where major producers are increasingly interested in acquiring smaller firms to bolster their production capabilities amid stable high prices for gold. Previous to this deal, Gold Fields announced an acquisition of the Canadian company Osisko Mining for $1.6 billion.
Analyst Emmanuel Mongieri from Bloomberg Intelligence has commented that M&A activity in the gold sector is expected to rise as companies aim to maintain production levels.
Incorporating the Sukari mine into its portfolio will enhance AngloGoldAshanti’s output by approximately 450,000 ounces, bringing their total annual production to over 3 million ounces.
This acquisition also marks a strategic move for AngloGoldAshanti as it continues to distance itself from South Africa, having sold its last mine there in 2020. Since then, the company, which has roots in the mining empire of Ernest Oppenheimer, has relocated its headquarters to Denver and its primary listing to New York.
Once finalized, the deal will result in AngloGold shareholders owning about 83.6% of the combined entity, while Centamin investors will hold approximately 16.4%.
