Endeavour Mining announced that it has ended merger talks with Acacia, after failing to reach an agreement that could have fetched adequate value for its shareholders.

In January, Canada-based Endeavour said that it was in preliminary discussions with Acacia regarding a potential transaction.

Endeavour's decision to end talks comes weeks after the the Tanzanian government prohibited Acacia from exporting its copper and gold concentrate.

Due to the ban on concentrate exports, Acacia is at a risk of losing about 30% of its revenue, The Telegraph stated.

According to a report by the Financial Times, the idea of the merger was to create a pan-African gold company which could compete with London’s largest gold producer Randgold Resources. While Acacia’s assets are present in Tanzania, Kenya and Burkina Faso. Endeavour Mining has its gold mines in Mali, Ghana and the Ivory Coast.

Tanzania is considered to be the fourth largest gold producer in Africa and Acacia is the largest miner in the country.

Endeavour Mining President & CEO Sébastien de Montessus said: "Our main focus is to create long-term value for our shareholders by advancing the strong organic growth opportunities within our portfolio, which include both the Houndé and Ity CIL projects and our ambitious five-year exploration program.

“We will continue to maintain a disciplined approach to business development opportunities and only enter into transactions that we believe are aligned with our long-term strategic objectives and that create value for our shareholders.”