Market Chatter: Zijin Gold's $4 Billion Takeover of Allied Gold Facing Regulatory Delays

MT Newswires Live05-30

Hong Kong-listed Zijin Gold International's $4 billion takeover of Canada's Allied Gold (AAUC) is facing delays because of opposition from Beijing regulators, threatening Zijin's first major deal since its initial public offering, the Financial Times reported Friday, citing people familiar with the matter.

China's National Development and Reform Commission has questioned the premium Zijin is paying, as well as the geopolitical risks associated with Allied's gold mine in Mali, according to the report.

The original agreement had a closing deadline of Friday, which can be extended if both sides are in agreement, the report added.

Allied Gold did not immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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