BARRICK Mining is considering a London listing for its African operations, with a possible all-share combination with UK-listed Endeavour Mining among the options being explored, said Reuters on Monday citing two sources familiar with the matter.
Discussions are at an early stage and no decision has been made, with no announcement expected soon, the newswire said. A combined entity could be valued at around $30bn.
Under one scenario, Toronto-listed Barrick would retain its Canadian listing as a holding company owning stakes in a New York-listed North American business and a separate Africa-focused vehicle listed in London. The structure would echo Barrick’s spin-off two decades ago of its African assets as Acacia, which it later reacquired, said Reuters.
Barrick earlier this year announced plans to spin off its North American operations with a primary New York listing.
Barrick CEO Mark Hill has also flagged plans to sell mines in African countries and jurisdictions where Barrick lacks majority control, including Papua New Guinea, as the company moves away from what it considers higher-risk regions.
The push follows Barrick’s settlement of a year-long dispute with Mali’s military government that resulted in the ousting of former CEO Mark Bristow.
London-listed Endeavour, backed by billionaire Naguib Sawiris, has been seeking acquisitions to grow its business, said Reuters. Its African footprint makes it a strategic fit, though a tie-up could reintroduce exposure to Mali, where Endeavour has previously exited.
A deal could resemble a merger of equals, potentially with little or no premium.
Both companies declined to comment.
