Endeavour, Acacia Mining in talks over possible merger

Image: Acacia Mining

Mining’s mergers and acquisitions (M&A) marketplace may be on the verge of heating up with West African-focussed gold companies Endeavour Mining and Acacia Mining considering a merger.

If the merger goes ahead, it could see one of the largest precious metal companies established in Africa, according to Bloomberg.

Both Endeavour and Acacia have confirmed that they are in “preliminary discussions” with each other and that this “may or may not result in agreement of a transaction”.

Endeavour said that while it often evaluated business development opportunities, its main focus was the “organic prospects in its existing asset portfolio”.

Acacia, a spin off of Canadian-based Barrick Gold, primarily operates in Tanzania, and is the country’s largest gold producers, with plans to extend its reach in West Africa.

Endeavour Mining operates mainly in West Africa, with sites in Ghana, the Ivory Coast, Mali and Burkina Farso.

Together, both companies have approximately $3.8 billion in combined market value, and would rank in the top five African gold mining companies by both market value and ounces produced.

There is speculation that the merger could be a reverse takeover, with Acacia purchasing Endeavour. Sources told Bloomberg that the merger could allow Barrick to reduce its 64 per cent stake in Acacia to around 30 per cent, potentially sending that stake to another buyer.

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