AngloGold Ashanti announced today that its proposed $2.5 billion acquisition of Centamin has received approval from the Egyptian Competition Authority, keeping the deal on track for completion in the fourth quarter. This marks a key milestone for the merger between the two companies.
The approval satisfies a major regulatory condition as outlined in the transaction’s scheme document. In September, AngloGold unveiled its share-and-cash offer for Centamin, which operates the Sukari Gold Mine, a significant asset producing 470,000 ounces of gold annually in Egypt’s portion of the Nubian gold shield.
Several conditions must still be met before the deal can be finalized, including the Jersey Court’s sanction of the scheme. Under the terms of the offer, Centamin shareholders will receive 0.06983 new AngloGold shares and $0.125 in cash per Centamin share. At the time of the offer, this valued Centamin at £1.9 billion ($2.5 billion).
Upon completion, AngloGold shareholders will hold approximately 83.6% of the combined entity, while Centamin shareholders will control around 16.4%. Centamin shareholders are also entitled to the company’s recently declared interim dividend of $0.0225 per share, set to be paid in September.
This deal is part of a broader trend of mergers and acquisitions in the mining sector, following Newmont’s $14.5 billion acquisition of Newcrest and Gold Fields’ C$2.16 billion offer for Osisko Mining. PwC reported that the total value of mining sector transactions across all metals rose 3% year-on-year to $64 billion in 2023.
Once finalized, the acquisition of Centamin is expected to boost AngloGold’s annual production to nearly 3.1 million ounces, making it the world’s fourth-largest gold producer. The addition of the Sukari mine will also help reduce AngloGold’s all-in sustaining costs (AISC), with Sukari averaging $1,196 per ounce in the past year, compared to AngloGold’s projected $1,500 to $1,600 per ounce.
