Zijin Mining's proposed $5.5 billion acquisition of Allied Gold Corp. is facing renewed uncertainty after Chinese regulators have yet to approve the transaction, despite the deal clearing hurdles in Canada and other international jurisdictions.
Allied Gold CEO Peter Marrone highlighted the delay in Beijing as a critical risk to the deal's completion, signaling that the cross-border merger is not yet a done deal.
The stall in China comes after the transaction had already secured necessary approvals from Canadian authorities and other relevant jurisdictions.
While Western regulators moved swiftly to clear the path for the Chinese miner to take control of the Canadian gold producer, the lack of a green light from Beijing has cast a shadow over the timeline and viability of the acquisition.
This development underscores the persistent regulatory friction facing Chinese outbound investment, particularly in the mining sector.
Even when deals are commercially sound and approved by host countries, final clearance from Chinese state authorities remains a volatile variable.