Barrick, Acacia have finally reached a buyout deal

It’s been a long time coming but Canada’s Barrick Gold Corp. and London-listed Acacia Mining plc have finally agreed a deal for Barrick to take full control.

Barrick is already the majority shareholder but the agreement means it will buy the 36% that it does not already own. Acacia shareholders had said the Toronto-based Barrick’s offer was too low but the new offer has an implied value of about 232 pence per Acacia share, a 24% premium to the closing price on Thursday.

“Given all the circumstances, this is possibly the best outcome,” Acacia’s acting Chief Executive Officer Peter Geleta told Bloomberg.

Barrick’s pressing to-do list includes negotiating with the Tanzanian government where Acacia operates. The government and Acacia have fallen out in the last few years with restrictions on exports, a huge tax bill, and then a threat to block the gold mining operation. The government has said it will deal with Barrick.

The spat has had a negative impact on Acacia’s shares, which recovered 20% after the deal was announced early Friday.

The deal is expected to close in the fourth quarter of 2019 subject to shareholder approval. Barrick will then delist from the London Stock Exchange.