AngloGold Ashanti to Buy Centamin, Expanding African Gold Portfolio
AngloGold Ashanti has announced its acquisition of Egypt-focused Centamin in a $2.5 billion stock and cash deal, further expanding its African operations. The deal, which includes a 36.7% premium on Centamin’s share price, will see Centamin shareholders receive 0.06983 new AngloGold shares and $0.125 in cash for each share they own. This offer values Centamin shares at 163 pence ($2.14), significantly higher than their closing price of 120 pence on Monday.
Shares in Centamin surged 24% to 148.10 pence following the news, while shares in Hochschild Mining, a peer listed in London, rose by 4%. After the acquisition, AngloGold shareholders are expected to own 83.6% of the combined company, with Centamin shareholders holding 16.4%.
The acquisition adds Egypt’s largest gold mine, the Sukari mine, to AngloGold’s portfolio. The deal is seen as "highly compelling" by AngloGold Ashanti’s Chair, Jochen Tilk, who emphasized the significant geological potential that AngloGold is well-positioned to develop.
This acquisition comes during a period of heightened deal activity in the gold mining sector. In 2023, Newmont acquired Newcrest Mining for $16.8 billion, and earlier in 2024, BHP Group abandoned its $49 billion bid to take over Anglo American.
Centamin’s board has signaled its unanimous support for the deal, which is expected to boost AngloGold’s cash flow in the first full year after completion.
