:max_bytes(150000):strip_icc()/GettyImages-1692354788-5a21b85ea1dd46db83351aa3e053d376.jpg "This Gold-Mining Stock Is Dropping After The Company Announced a Big Deal")
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Key Takeaways
- AngloGold Ashanti agreed to buy Centamin for $2.5 billion to boost its gold mining portfolio in Africa.
- AngloGold is paying Centamin shareholders $0.125 in cash and 0.06983 shares in stock.
- The deal gives AngloGold the largest gold mine in Egypt.
Shares of AngloGold Ashanti Plc (AU) tumbled Tuesday after the gold miner announced a deal to buy smaller rival Centamin for $2.5 billion in cash and stock.
AngloGold will pay Centamin investors $0.125 in cash and 0.06983 in new AngloGold Ashanti shares for each share of Centamin they own, the companies said. Shares of AngloGold were recently down about 8%, trading at their lowest levels since early last month. Centamin’s shares jumped in London trading.
Centamin Operates Egypt’s Largest Gold Mine
Centamin operates the largest gold mine in Egypt, Sukari, which is also one of the world’s biggest, according to the company. Buying the company would boost AngloGold’s annual gold production by 450,000 ounces to more than 3 million.
AngloGold Chair Jochen Tilk said the acquisition “offers enormous geological potential that we are very well placed to develop.”
AngloGold shares are up roughly 40% this year.
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