Barrick weighs UK listing for African assets in $30B tie-up with Endeavour
Barrick Gold is considering a UK listing for its African assets as part of a potential $30 billion merger with Endeavour Mining, according to Reuters. The move mirrors Barrick's spin-off of Acacia Mining two decades ago and aims to streamline its portfolio while creating a major African gold powerhouse. This matters because it would consolidate two of the continent's largest gold producers, potentially reshaping the gold mining landscape in West Africa and beyond.
Barrick Gold, the world’s second-largest gold miner by market capitalization, is reportedly exploring a UK stock exchange listing for its African assets as part of a blockbuster $30 billion tie-up with Endeavour Mining. Sources familiar with the matter, speaking to Reuters, indicate the move mirrors Barrick’s previous spin-off of Acacia Mining some 20 years ago, when it listed its Tanzanian operations separately on the London Stock Exchange. The deal, still in early-stage discussions, would combine Barrick’s African gold mines—including the Loulo-Gounkoto complex in Mali, the Kibali mine in the Democratic Republic of Congo, and the Bulyanhulu and North Mara mines in Tanzania—with Endeavour’s high-grade assets in West Africa, such as the Sabodala-Massawa mine in Senegal and the Fetekro project in Côte d’Ivoire.
If completed, the merger would create a gold mining behemoth producing roughly 4 million ounces of gold annually from Africa alone, with a combined enterprise value approaching $30 billion. This consolidation comes at a time when gold prices hover near historic highs above $2,400 per ounce, driven by global economic uncertainty, central bank buying, and geopolitical tensions. For Barrick, the spin-off or separate listing would serve a dual purpose: it would unlock value from its African portfolio, which has faced operational challenges and regulatory headwinds in jurisdictions like Mali and Tanzania, while allowing the company to focus on its core North American and South American operations. For Endeavour, which recently parted ways with CEO Sébastien de Montessus amid a scandal over improper payments, the merger offers a path to scale and stability under Barrick’s operational expertise.
The proposed structure echoes the 2000 spin-off of Acacia Mining (then called Bulyanhulu Gold Mine), which Barrick later re-absorbed in 2020 after resolving a prolonged tax dispute with the Tanzanian government. However, industry analysts caution that the current plan faces significant hurdles, including regulatory approvals from multiple African governments, potential nationalist sentiments over foreign control of strategic resources, and the complexities of integrating two large organizations with different corporate cultures. Additionally, the UK listing would expose the combined entity to London’s stringent environmental, social, and governance (ESG) standards, a factor increasingly important for institutional investors.
From a market perspective, the tie-up is part of a broader wave of consolidation in the gold sector, following Newmont’s $19 billion acquisition of Newcrest Mining in 2023 and Agnico Eagle’s expansion in Canada. If Barrick succeeds, it will cement its position as Africa’s largest gold producer, challenging global peers like Newmont and Kinross. The deal also underscores the growing importance of gold as a safe-haven asset amid inflationary pressures and currency volatility. Should the merger proceed with a UK listing, it could attract a new wave of investors focused on African mining, while providing a liquidity event for Endeavour’s shareholders. The final outcome remains uncertain, but the mere possibility has already sent ripples through the gold mining industry, signaling that the era of big M&A in precious metals is far from over.