Barrick weighs UK listing for African assets in $30B tie-up with Endeavour

Barrick Mining (TSX: ABX) (NYSE: B) is said to be weighing up a London listing for ‌its African business, a move that may involve merging with Endeavour Mining (LON, TSX: EDV), Reuters reported on Monday.

According to a source cited by the news agency, the two companies are considering several scenarios — one of which would see Barrick to keep its Toronto listing as a holding company to own its New York-listed shares and a new Africa-focused entity listed in London.

The market value of the combined entity could reach $30 billion, representing nearly half of Barrick’s current market capitalization on the NYSE, Reuters estimates.

This is identical to what the company did some 20 years ago, when it spun off its Africa business and listed in the UK as Acacia before later reacquiring it, a separate source familiar with Barrick’s operations told Reuters.

Discussions are still in the early stages and there is no certainty that a deal would be finalized, the news agency said. Barrick and Endeavour did not respond to the Reuters report.

MINING.COM has reached out to Barrick for commentary.

Shares of Barrick Mining fell 0.4% to $42.37 in New York Monday afternoon, in line with the decline in gold prices. Endeavour fell 5.1% to C$82.03 in afternoon Toronto trading.

Strategic pivot

News of the proposed deal comes as the Toronto-based gold miner works to create a newly listed company in New York to hold its North America assets, namely its mines in Nevada and the Dominican Republic.

The spinoff, which is targeted for completion by the end of 2026, is part of a broader strategic shift by Barrick to pivot away from what it considers to be “risky” jurisdictions. When it unveiled those plans earlier this year, the company had just ended a year-long dispute with the Mali government involving the Loulo-Gounkoto mine complex.

Barrick also operates several other mines in Africa, including the North Mara & Bulyanhulu mines that it owns in a joint venture with the Tanzania government, Zambia’s Lumwana mine, Kibali in the Democratic Republic of Congo and Tongon in Ivory Coast.

Elsewhere, the company also has a major project in Reko Diq in Pakistan, for which it has flagged development delays.

Stronger presence in Africa

Endeavour, backed ​by billionaire Naguib Sawiris, has a strong presence in West Africa, holding several large gold mines that together could produce 1.2 million oz. this year. The UK-listed company is a fit for Barrick’s move to get rid of its “rump”, one banker in the mining M&A space ​told Reuters.

Reaching a deal with Barrick would give Endeavour exposure to new ​regions such as ⁠Tanzania and the DRC and reintroduce exposure to Mali, which the company has previously exited and may be reluctant to return to, the news agency said.

Analysts cited by Reuters value Endeavour’s portfolio at about $15 billion, roughly the same as Barrick’s African assets.