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 yesterday 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
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