The Ghanaian government said on Tuesday it had agreed to sell gold producer Ashanti Goldfields to South Africa’s AngloGold.
The announcement was made after a cabinet meeting. The Ghanaian government holds a 16,9% golden share in Ashanti that allows it to veto any merger or takeover deal.
If the Ashanti takeover is completed, AngloGold will become the world’s largest gold producer.
AngloGold, which is 51% 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.
British rival Randgold subsequently upped its own offer to $1,7-billion.
But Ashanti said on Monday its board 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.
Although AngloGold retained the backing of Ashanti’s management, its bid was still subject to the approval of the Ghanaian government, which is also the regulator of the target company. – AFP