[Tanzania] Acacia Mining, Endeavour Mining merger talks halted
27-03-2017 09:00:00 | by: Bob Koigi | hits: 11218 | Tags:

ACACIA Mining, the largest mining firm in the country, has dumped a 3.0billion pound bid to acquire Canada’s Endeavour Mining.

The merger talks, according to a statement issued came to a halt at both gold mining firms doubting the value of the deal to their respective shareholders. Acacia confirmed through a press statement that it has decided not to progress towards a combination of the two businesses.

Acacia Chief Executive Officer Brad Gordon, CEO said they are focusing on creating value for their shareholders, has demonstrated by the successful and ongoing transformation of the business over the last three years.

“We believe we will continue to unlock significant value at our operations in Tanzania, which are the foundations of our business,” Mr Gordon said. Endeavour President and CEO Sébastien de Montessus, said their main focus was to create long-term value for our shareholders by advancing the strong organic growth opportunities within their portfolio.

“We will continue to maintain a disciplined approach to business development opportunities and only enter into transactions that we believe are aligned with our long-term strategic objectives and that create value for our shareholders,” de Montessus said in a statement.

The preliminary discussions with Endeavour Mining started in January this year, raising investor hopes of an African giant to rival London’s largest gold miner Randgold Resources.

The new company would have spanned Acacia’s assets in Tanzania and Endeavour’s mines in Côte d’Ivoire, Burkina Faso, Mali and Ghana.

However, collapsing of the merger deal came barely weeks after the government slapped Acacia with an export ban on its copper and gold concentrate.