Zijin Gold’s takeover of Allied Gold collapses

The two companies let the 29 July deadline lapse, saying there was no reasonable likelihood the remaining conditions would be met. Zijin will instead buy a 9.2% stake for about $295m at C$32.55 a share, well below the C$44 offer. Allied shares fell nearly 15%.

Why it matters. Regulatory risk is the main reason agreed cross-border deals fail, and the target’s shares fall back toward their standalone value.

Source

Mining Weekly

In the course

Module 9: The M&A process