AngloGold Ashanti buys Centamin for US$2.5 billion

AngloGold Ashanti has acquired Egypt-focused gold miner Centamin in a $2.5 billion (£1.9 billion) stock and cash deal.

The transaction will see the South African company become the world’s fourth-largest gold producer.

The deal grants AngloGold control of the Sukari mine, Egypt’s largest and first modern gold operation, as well as one of the world's top-producing mines.

The addition of Sukari is expected to boost AngloGold’s annual output by around 450,000 ounces, bringing its total production to 3.1 million ounces per year.

Sukari, which has been in production since 2009, has produced over 5.9 million ounces of gold to date and is projected to continue for another 14 years.

“Today’s transaction is highly compelling and builds on the strong foundation we have established,” AngloGold’s chairman Jochen Tilk said in a statement. “It strengthens our position as the leading gold producer in Egypt and presents significant geological potential that we are well-equipped to develop.”

As part of the agreement, Centamin shareholders will receive 0.06983 new AngloGold shares for each Centamin share, along with $0.125 in cash.

The offer represents a 37% premium to Centamin’s closing price on September 9.

Following the merger, AngloGold shareholders will own approximately 83.6% of the combined entity, while Centamin investors will hold around 16.4%.

The acquisition follows AngloGold’s strategic shift away from South Africa, where it was founded more than a century ago.

In 2020, the company sold its last remaining South African asset to Harmony Gold and relocated its headquarters to London and New York last year.

This latest move comes amid a wave of industry consolidation driven by record gold prices. Last year, Newmont acquired Australia’s Newcrest Mining in a $19 billion deal, solidifying its position as the world’s largest gold producer.

Agnico Eagle Mines has also completed two major transactions since 2022, while South Africa’s Gold Fields recently purchased Canada’s Osisko Mining (TSX: OSK) in a deal worth C$2.16 billion ($1.6 billion).

The deal is another blow to the London Stock Exchange, which has seen a string of high-profile exits in recent years.

The market has faced difficulties since Randgold’s delisting following its merger with Barrick Gold in 2018, and the departure of Russian gold miners after the invasion of Ukraine.