Barrick Mining is examining a plan to list its Africa-focused operations in London and has discussed a possible all-share combination with UK-listed Endeavour Mining, according to two sources familiar with the discussions. Those involved emphasised that the conversations are preliminary, that no decision has been reached, and that there is no certainty a transaction will occur or be announced soon.
One scenario under consideration would see the Canadian-listed parent retain a Toronto listing as a holding company. That holding company would hold stakes in a North American-listed Barrick in New York alongside a separate Africa-focused entity that would carry a primary listing in London, one source said. In this configuration, the Africa business would be ring-fenced as a London-listed company while the broader group structure would maintain its existing North American listings.
The potential combined Africa entity and Endeavour could be valued at about $30 billion in market capitalisation under one set of assumptions cited by the sources. Endeavour, which is listed in London and backed by billionaire Naguib Sawiris, is said to have a market value of about $15 billion. Barrick and Endeavour did not comment on the discussions.
People familiar with Barrick noted the proposed move would echo a similar corporate action taken roughly two decades ago, when the company spun off its Africa business and listed it in the United Kingdom under the Acacia name, before later bringing those assets back into the group. A source with knowledge of Barrick’s operations described the current proposals as a repeat of that strategic approach, should the company proceed.
Earlier this year, Barrick outlined plans to separate its North American operations with a primary listing in New York. Company leadership has also indicated an intention to sell mines located in African countries as well as assets in jurisdictions where Barrick lacks majority ownership but holds management control, such as Papua New Guinea. Those comments were attributed to CEO Mark Hill in prior company disclosures.
Under the stewardship of Chairman John Thornton and CEO Mark Hill, Barrick has been pursuing a strategy to reduce exposure to what it views as higher-risk regions and to respond to investor demands for stronger returns. The push to divest or restructure parts of the business follows the resolution of a year-long dispute with Mali’s military-led government, a conflict which preceded the departure of the company’s former CEO, Mark Bristow.
Bankers active in mining mergers and acquisitions described Endeavour’s African footprint as a strategic complement to any move by Barrick to separate or dispose of its so-called rump of African assets. One banker noted that a tie-up could give Endeavour entry into territories where Barrick operates, such as Tanzania and the Democratic Republic of Congo, though another banker pointed out the deal could also reopen exposure to Mali, a jurisdiction from which Endeavour has previously exited and might be reluctant to re-enter.
Endeavour, having faced operational and governance issues in the past, is reported by a source to have stabilised and be in a position to contemplate a larger acquisition or combination. Sources suggested a merger between Endeavour and Barrick’s African assets could resemble a merger of equals and might be structured with little or no premium, depending on negotiations and shareholder outcomes.
Those involved in the discussions cautioned that the process is in its infancy and emphasised the absence of certainty around timing, structure or final approval. No immediate announcements are expected and both companies have remained silent on the matter when approached for comment.