The Globe and Mail reports in its Tuesday, Jan. 17, edition that Acacia Mining jumped to
the highest in almost two
months after the gold miner
confirmed it is in talks with Endeavour Mining about a possible merger
of the two companies which
have a combined value of about
$4-billion (U.S.).
A Bloomberg dispatch to The Globe reports that on Friday Acacia said it
was in "discussions regarding a
possible combination" with
Endeavour.
Endeavour confirmed on Friday
it had held discussions with
Acacia that "may or may not
result in agreement of a transaction."
Investec analysts say, "On the face of it, this appears
a sensible African-focused fit,
with Endeavour's longer-term
growth adding appeal to Acacia's
flat profile."
A merger would allow Barrick
Gold to reduce its 64-per-cent
interest in Acacia.
The deal could enable Barrick
to lower its interest in Acacia to
about 30 per cent. Investec sees Barrick okaying the deal.
The transaction could be
structured as a reverse takeover,
with Acacia buying Endeavour
and the combined company
keeping its listing in London,
says an unnamed source.
The plans are not concrete
and the structure may change,
adds the source.
© 2024 Canjex Publishing Ltd. All rights reserved.