Zijin Gold’s planned takeover of Allied Gold has been terminated, but the Chinese miner will invest about $295 million in the company behind major gold assets in Mali, Ethiopia and Côte d’Ivoire.
China’s Zijin Gold has abandoned its C$5.5 billion takeover of Allied Gold after the companies concluded that the remaining conditions could not be completed within a reasonable period.
The deal, worth about US$3.9 billion when announced, would have transferred control of Allied’s African gold portfolio to the Chinese mining group. Allied owns producing mines and development projects in Mali, Côte d’Ivoire and Ethiopia.
Zijin is not walking away entirely. Under a separate agreement announced on Wednesday, it will invest approximately US$295 million, or C$417 million, in Allied through a private placement.
The investment will give Zijin about 9.2% of Allied’s outstanding shares, preserving a Chinese foothold in one of Africa’s fastest-growing gold portfolios without completing the full acquisition.
