Eldorado Gold Corp has agreed to buy European Goldfields for about C$2.5bn ($2.4bn).

The company’s shareholders will be offered 0.85 Eldorado share and C$0.0001 in cash for each European Goldfields share they own.

Upon completion of the deal, current Eldorado shareholders will own about 78% of the combined company while shareholders of European Goldfields will hold around 22% on a fully diluted basis, reports Reuters.

Eldorado said the deal would create a company with a market capitalisation of about C$11bn (US$10.59bn) and help diversify production.

The firm expects to increase annual production to reach more than 1.5 million ounces of gold by 2015 and said it plans to produce 650,000 ounces of gold by the end of this year.

European Goldfields owns 95% of the Stratoni lead, zinc and silver mine in north-eastern Greece, and also has gold and base metal deposits at Skouries and Olympias in Greece, and Certej in Romania.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Canada-based European Goldfields has gold reserves of ten million ounces within the European Union. It is also a partner of Greece-based construction company Aktor.

Eldorado is a gold producer and developer with operations in Brazil, China, Greece, and Turkey and its surrounding regions.