South Africa's AngloGold Ashanti has acquired Centamin PLC, operator of Egypt's largest gold mine, in a stock-and-cash deal worth $2.5 billion, Reuters reported, citing the two companies.
The deal, which aims to strengthen AngloGold's presence in Africa, sees Centamin shareholders receive 0.06983 new AngloGold shares and $0.125 in cash for each Centamin share.
This indicates an offer price of 163 pence ($2.14) per share, representing a premium of 36.7% over the previous closing price of Centamin.
The acquisition is part of a broader trend in the gold mining sector, following recent significant deals such as Newmont's $16.8 billion takeover of Newcrest Mining in late 2023 and BHP Group's $49 billion bid for Anglo American.
Once the acquisition is completed, AngloGold shareholders are expected to own approximately 83.6% of the company's enlarged issued share capital, while Centamin shareholders will own approximately 16.4%.
AngloGold expects the transaction to enhance free cash flow per share in the first full year following the acquisition.
The acquisition includes Centamin's Sukari Gold Mine, the largest gold mine in Egypt and one of the largest gold producers in the world, which will boost AngloGold's annual production to more than 3 million ounces, making it the fourth largest gold producer by volume in the world.
The deal also expands AngloGold's operations into a key new gold producing region, complementing its existing assets in nine countries.
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