AngloGold Ashanti to Acquire Centamin, Marking End of an Era for UK Gold Miners
FTSE 250 gold miner Centamin is exiting the London Stock Exchange after accepting a £1.9 billion ($2.5 billion) takeover bid from South Africa’s AngloGold Ashanti. The Centamin board has recommended shareholders approve the £1.63 per share offer, which values the company at a 36.7% premium to its previous closing price. Following the announcement, Centamin shares surged 22.9% to 146.9 pence.
The acquisition will leave Endeavour Mining as the only large primary gold miner on the London Stock Exchange, following the earlier departures of Randgold and several Russian gold miners in the wake of geopolitical tensions. The move also marks a broader trend of companies leaving the London market, which has struggled with a lack of fresh listings and ongoing consolidation in the mining industry.
AngloGold is particularly interested in Centamin’s Sukari mine in Egypt, one of the largest gold mines in the world. Since operations began in 2009, Sukari has produced over 5.9 million ounces of gold. With this acquisition, AngloGold Ashanti aims to further strengthen its position in the global gold market, offering long-term returns to its shareholders. Once completed, AngloGold shareholders will own 83.6% of the merged company, with Centamin shareholders holding the remaining 16.4%.
The Centamin deal is seen as the "end of an era" for mid- and large-cap gold miners on the London market. The sector has been consolidating, with companies like Newmont and Gold Fields making major acquisitions in recent years.
