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S Africa, Ghana gold giants to merge into top world producer
Accra, Nov 02: South Africa`s Anglogold and Ghana`s Ashanti Goldfields look set for marriage soon, creating the world`s largest gold producer with 26 mines on four continents.
Accra, Nov 02: South Africa's Anglogold and Ghana's Ashanti Goldfields look set for marriage soon, creating the world's largest gold producer with 26 mines on four
continents.
Ashanti, burdened by high operating costs and problems raising cash to pay short-term debt, received the go-ahead from the Ghana government on Tuesday, although Parliament here will have the last word on the merger.
The merged company would produce 7.5 million ounces of gold a year.
The bid is subject to government approval here because the Ghanaian government is also the regulator of the target company. The government, with a 16.9 percent golden share in Ashanti that allows it to veto any merger or takeover deal, agreed the merger after a hectic emergency cabinet meeting.
Anglogold, 51-percent owned by South African mining giant Anglo American, announced on October 15 it was making an all-share offer for Ashanti of 1.42 billion dollars.
Ashanti said last Monday its board had agreed unanimously to continue recommending Anglogold's offer to shareholders because it was "in the best interest" of its shareholders, employees and the people of Ghana. Anglogold-Ashanti, the merged company, would become the largest gold mining company in the world in terms of resources and production, thus having "a tremendous positive impact on Ghana's investment profile," Ghana's Minister for Mines Cecilia Bannerman said.
Bureau Report
The merged company would produce 7.5 million ounces of gold a year.
The bid is subject to government approval here because the Ghanaian government is also the regulator of the target company. The government, with a 16.9 percent golden share in Ashanti that allows it to veto any merger or takeover deal, agreed the merger after a hectic emergency cabinet meeting.
Anglogold, 51-percent owned by South African mining giant Anglo American, announced on October 15 it was making an all-share offer for Ashanti of 1.42 billion dollars.
Ashanti said last Monday its board had agreed unanimously to continue recommending Anglogold's offer to shareholders because it was "in the best interest" of its shareholders, employees and the people of Ghana. Anglogold-Ashanti, the merged company, would become the largest gold mining company in the world in terms of resources and production, thus having "a tremendous positive impact on Ghana's investment profile," Ghana's Minister for Mines Cecilia Bannerman said.
Bureau Report