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AngloGold Ashanti to Become World’s 4th Largest Gold Producer with USD 2.5bn Centamin Acquisition

  • EMIS
  • 1 min read

By Velizar Velikov, Head of M&A Database at EMIS

AngloGold Ashanti, one of the world’s largest gold mining companies, is set to acquire LSE- listed miner Centamin in a 2.5bn all-share deal. This acquisition will make AngloGold Ashanti the fourth-largest gold producer globally, adding significant heft to its production capabilities. 

The centerpiece of this acquisition is Centamin’s flagship Sukari gold mine in Egypt, the country’s largest and first modern gold operation. Strategically well placed within the emerging Arabian Nubian Shield, Sukari has yielded over 5.9 million ounces of gold since beginning production in 2009 and is projected to produce for at least another 14 years.

By integrating Sukari into its portfolio, AngloGold Ashanti expects to increase its annual gold production by approximately 450,000 ounces, boosting its total output to over 3.0 million ounces.

The transaction structure offers Centamin shareholders 0.06983 of a new AngloGold Ashanti share plus USD 0.125 in cash for each Centamin share, reflecting a 36.7% premium over Centamin’s closing price before the announcement. The deal has already secured approval from Centamin’s shareholders and Egypt’s competition authorities, with final consent from the Jersey Court anticipated in November.

This strategic move not only strengthens AngloGold Ashanti’s position in the global gold market but also enhances its access to a high-grade, long-life asset in a rapidly developing mining region. The acquisition comes amid a wave of consolidation in the gold mining industry, spurred by strong gold prices and a strategic push for high-quality assets. 

AngloGold Ashanti, headquartered in Johannesburg, South Africa, has a diversified portfolio with operations across nine countries, including Ghana, Australia, the United States, and Argentina. Formed in 2004 through the merger of AngloGold and Ashanti Goldfields Corporation, the company produced about 2.635 million ounces of gold in 2023 and employs around 33,700 people.

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