Sawiris-backed Endeavour Mining in merger talks with West Africa Teranga Gold

Canada’s Endeavour Mining, 24.12 percent owned by the Sawiris family, is in talks over a merger with West Africa-based miner Teranga Gold.

Endeavour and Teranga are discussing a “merger of equals style” acquisition, which would see Endeavour add another mine to its portfolio in Burkina Faso and establish a footprint in Senegal.

It is also mulling an all-stock agreement and could offer a lower premium for the company, sources told Bloomberg. Both companies said that the talks will not necessarily lead to an agreement.

Endeavour purchased Burkina Faso’s largest gold producer Semafo for $690.7 million in March to create West Africa’s largest gold mining company. Post-Semafo, Endeavour is now one of the 15 largest gold miners in the world, producing 1 mn ounces each year.

The combination of Endeavour and Teranga would further solidify Endeavour as West Africa’s leading gold producer – though a low premium offer for Teranga would leave too much value on the table,” Raymond James analyst Craig Stanley told Reuters.