22 Mar $3.7 billion African gold miners’ merger deal terminated
Acacia Mining (LSE:ACA) has ended discussions with Canadian firm Endeavour Mining (TSE:EDV) regarding a US$3.7 billion merger deal.
The news comes after Tanzania’s recent decision to impose a ban on gold and copper exports, which prompted both companies to postpone the merger talks.
The merger was initially based on the opportunity to form a pan-African gold firm to rival the African-focused gold mining giant Randgold Resources (LSE:RRS).
However, this prospect has been damaged by Tanzania’s recent export ban, particularly as Acacia’s assets are predominantly based in the East African nation.
Acacia chief executive officer Brad Gordon said: “We believe we will continue to unlock significant value at our operations in Tanzania, which are foundations of our business.”
Gordon added that the company was excited about the potential of a new high-grade discovery made in Kenya.
Meanwhile Sébastien de Montessus, Endeavour CEO said: “We will continue to maintain a disciplined approach to business development opportunities and only enter into transactions that we believe are aligned with our long-term strategic objectives.”