Anglogold: Choosing a Merger Target

Description

Anglogold: Choosing a Merger Target: Abstract

Anglogold: Choosing a Merger Target is a case study by Dominik Heil, Lisa Papania and Tessa Murray.

In February 2002, Johannesburg-based AngloGold Ltd lost its position as No1 gold producer to America’s Newmont Gold Corporation when Newmont outbid AngloGold in a merger deal with Australia’s largest gold company, Normandy Mining Ltd. Urgently, AngloGold had to find other ways of surviving the industry’s dwindling resources. Now, on the evening of 3 September 2002, Paul Dennison, AngloGold’s business development analyst, was considering the options for presentation to the chief executive, Bobby Godsell, in the morning.

Teaching objectives

This case is the first in a series on the merger and integration the gold mining organisations, AngloGold and Ashanti. Each case intends to generate learning on various aspects of strategy as they related to international mergers and acquisitions.

• See Case B: AngloGold: Winning Hearts and Minds
• See Case C: Anglogold: Anglogold Ashanti Ltd: The Integration