Allied Gold (TSX: AAUC) has cleared two more regulatory hurdles on the path to its sale to Zijin Gold International, even as the timeline for completing the deal slips further out.
The company said Zijin Gold has received approval under the Investment Canada Act, which completes the approval process in Canada for the transaction. That removes one of the more closely watched conditions attached to a foreign takeover of a domestic gold producer.
Alongside the Canadian sign-off, the deal also picked up merger clearance from the Regional Competition Authority of the Economic Community of West African States, known as ECOWAS, and from the Competition and Consumer Commission of the Common Market for Eastern and Southern Africa, or COMESA. Other approvals from African host countries have either been granted or are in advanced stages, according to the company.
The notable gap is China. Clearances from Beijing’s National Development and Reform Commission and the Ministry of Commerce remain outstanding, and they are arguably the most consequential approvals left, given Zijin’s standing as one of the country’s largest gold miners. Regulators there are reportedly concerned about the premium being paid and the in-country risk related to Mali.
The outside date for closing meanwhile has been pushed to July 29, 2026, a two month extension from the previous deadline of May 29.
The arrangement dates back to January, when Zijin agreed to acquire Allied in an all cash deal valued at roughly C$5.5 billion, paying C$44 per share. Allied shareholders signed off on the transaction at the end of March.
Allied Gold last traded at $34.90 on the TSX.
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