Endeavour to Buy Rival Teranga Gold in $1.86 Billion Deal

Endeavour to Buy Rival Teranga Gold in $1.86 Billion Deal

(Bloomberg) — Endeavour Mining Corp., the acquisitive gold producer backed by Egyptian billionaire Naguib Sawiris, agreed to buy Teranga Gold Corp. in the latest deal to reshape the sector.

After Barrick Gold Corp. and Newmont Corp. two years ago created behemoths that dwarf the rest of the industry, other gold miners are trying to consolidate to remain relevant to shareholders. Helped by record gold prices, that’s led to a flurry of deals across the sector as smaller producers beef up their scale.

Endeavour said last week it was discussing a “merger of equals style” deal with Teranga after the talks were first reported by Bloomberg. Endeavour is offering 5.1% premium to Teranga’s closing price on Friday, valuing its equity at C$2.44 billion ($1.86 billion), according to Bloomberg calculations.

The combined company will produce about 1.5 million ounces of gold a year across West Africa, making it one of the 10 largest producers. […]

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