(RTTNews) - Eldorado Gold Corporation (EGO) shares slid 10.74%, trading at $38.31, down $4.61, after the company announced it will acquire Foran Mining Corporation in a C$3.8 billion, approximately $2.8 billion deal to form a leading diversified gold-copper producer.
The merger agreement will combine Eldorado's existing assets with Foran's high-quality development projects in Canada and Greece, creating a company expected to deliver significant near-term growth and robust cash flows upon commercial production. Foran shareholders are to receive Eldorado shares and a cash component, resulting in an ownership split of roughly 76 percent Eldorado and 24 percent Foran in the combined business.
The deal positions Eldorado to benefit from diversified long-life assets and stronger cash flow generation while scaling its presence across multiple jurisdictions in the gold and copper sectors. However, near term integration concerns contributed to the share decline.
On the day of the announcement, EGO opened near $42.5, slipped to an intraday low around $37.8, and saw a high near $43.1, compared with a previous close near $42.92
Trading volume exceeded average daily levels as investors digested the strategic acquisition and its implications for Eldorado's production profile and asset mix. Eldorado's 52-week range reflects considerable volatility tied to M&A activity, commodity price trends, and exploration results in gold and base metals markets.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
