What's Happening?
Zijin Gold International Company has entered into a definitive agreement to acquire all issued and outstanding shares of Canadian company Allied Gold for approximately C$5.5 billion ($4.01 billion) in an all-cash
deal. The acquisition offer is priced at C$44 per share. Allied Gold's primary assets include the Sadiola Gold Mine in Mali, the Côte d’Ivoire Complex, and the Kurmuk gold mine in Ethiopia, which is expected to begin production in the second half of 2026. The transaction is anticipated to close by late April 2026, subject to necessary conditions and clearances. Once completed, Allied Gold shares will be delisted from the Toronto Stock Exchange and the New York Stock Exchange, and the company will cease to be a reporting issuer under Canadian and US securities laws.
Why It's Important?
This acquisition is significant as it consolidates Zijin Gold's position in the global gold mining industry, particularly in Africa. The deal underscores the strategic importance of Allied Gold's assets, which offer long-term production potential. For the US and Canadian markets, the delisting of Allied Gold from major stock exchanges marks a shift in the company's operational focus and ownership structure. The transaction also highlights the increasing interest of Chinese companies in acquiring valuable mining assets abroad, which could influence global gold supply dynamics and pricing.
What's Next?
Following the acquisition, Zijin Gold plans to work with stakeholders in Ethiopia, Mali, and Côte d’Ivoire to advance the operations of the acquired assets. The focus will likely be on optimizing production and exploring expansion opportunities. The completion of the transaction will require approval from Allied Gold shareholders and compliance with regulatory conditions, including the Investment Canada Act. The industry will be watching closely to see how Zijin Gold integrates these assets and whether it pursues further acquisitions in the region.
