AngloGold Gets Egypt's Sukari Mine in $2.5B Centamin Acquisition
TLDR
- AngloGold Ashanti acquires Centamin Plc for £1.9 billion as gold prices surge, gaining control of Egypt's Sukari mine, a top gold deposit.
- The acquisition offers a 37% premium to Centamin's closing price on September 9, impacting stock prices: AngloGold shares drop, while Centamin surges.
- This move signifies AngloGold's departure from South Africa, with AngloGold shareholders to hold 83.6% and Centamin investors to own 16.4% of the merged company post-acquisition.
AngloGold Ashanti has agreed to acquire Centamin Plc in a deal valued at £1.9 billion ($2.5 billion), as gold prices surge, prompting miners to expand. The acquisition gives AngloGold control of Egypt's Sukari mine, one of the world’s top gold deposits, despite historical operational and political issues following Egypt's 2011 uprising.
The cash and share offer includes a 37% premium to Centamin’s closing price on September 9. AngloGold’s shares dropped by as much as 9.8% in Johannesburg, marking its largest intraday decline in three years, while Centamin surged 24% in London.
The move solidifies AngloGold's shift away from South Africa after selling its last mine there in 2020. Upon completion, AngloGold shareholders will hold 83.6% of the merged company, with Centamin investors owning 16.4%.
Key Takeaways
AngloGold Ashanti’s acquisition of Centamin Plc marks another step in the growing trend of consolidation among gold miners as bullion prices approach record highs. By adding Egypt’s Sukari mine to its global portfolio, AngloGold strengthens its position as a leading producer, with assets across Australia, Congo, and now Egypt. This deal reflects broader industry dynamics, as major gold producers like AngloGold and Gold Fields seek to acquire smaller rivals to capitalize on the rising value of gold. The 37% premium paid for Centamin underscores the urgency to expand while prices are high.
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