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 Reuters, the two companies are considering several scenarios, one of which is for Barrick to keep its Toronto listing as a holding company to own its New York-listed shares and set up a separate 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 re-acquiring it, a separate source familiar with Barrick’s operations told Reuters.

However, these talks are still in the early stages, the sources said, adding there is no certainty that a deal would be finalized. Barrick and Endeavour did not respond to the Reuters report.

MINING.COM has reached out to Barrick for commentary.

Shares of Barrick Mining dipped 1.2% in New York by midday Monday, in line with the decline in gold prices. Those of Endeavour Mining closed the session 4.8% lower in London.

Strategic pivot

The proposed deal coincides with the Toronto-based gold miner’s ongoing plans 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 mines in Africa, including the North Mara & Bulyanhulu mines that it owns in a joint venture with the Tanzania government, the Lumwana mine in Zambia, Kibali in the Democratic Republic of the Congo, and Tongon in Ivory Coast.

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

Stronger Africa presence

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.

Another said the tie-up would give Endeavour exposure to new ​regions such as ⁠Tanzania and the DRC and reintroduce exposure to Mali, where the company has previously exited and may be reluctant to return.

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