Back to the complete issue
Wednesday, 11 November 2020

Endeavor has Teranga in its sights for second West Africa gold merger

Sawiris-backed Endeavour Mining continues quest to become West Africa’s gold king: Canada’s Endeavour Mining is in talks over a merger with West Africa-based miner Teranga Gold, the companies said in separate statements (here and here) yesterday, without providing further details. Endeavour and Teranga are discussing a “merger of equals style” acquisition, which would see Endeavour add another mine to its portfolio in Burkina Faso and establish a footprint in Senegal. It is also mulling an all-stock agreement and could offer a lower premium for the company, sources told Bloomberg. Both companies said that the talks will not necessarily lead to an agreement.

A major play for West Africa: Endeavour, 24.12% owned by the Sawiris family, purchased Burkina Faso’s largest gold producer Semafo for USD 690.7 mn in March to create West Africa’s largest gold mining company. Post-Semafo, Endeavour is now one of the 15 largest gold miners in the world, producing 1 mn ounces each year. “The combination of Endeavour and Teranga would further solidify Endeavour as West Africa’s leading gold producer,” Raymond James analyst Craig Stanley told Reuters.

Calls for consolidation: The CEO of Barrick Gold has recently reiterated his calls for increased consolidation in the sector so companies can increase spend on exploration amid declining reserves. The surge in gold prices this year has pushed up company valuations, resulting in a slowdown in M&A activity after a flurry of agreements in 2018.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2021 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of Commercial International Bank (tax ID: 204-891-949), the largest private-sector bank in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; and Act Financial (tax ID: 493-924-612), the leading activist investor in Egypt; and Abu Auf (tax ID: 584-628-846), the leading health foodmaker in Egypt and the region.