Toronto-based Allied Gold Corp. said Wednesday it has terminated its $5.5 billion agreement to be acquired by China’s Zijin Gold Co. Intl. Ltd., ending a major proposed deal in the gold mining sector.
The collapse comes after a period of weaker gold prices, according to the report headline, underscoring how swings in commodity markets can affect the timing and appeal of large mining takeovers. The transaction had positioned Zijin to expand through a high-value purchase of a Canadian gold company.
While the available report excerpt does not detail the exact terms behind the termination, the end of the agreement marks a significant reversal for both companies. Allied Gold had been set to be taken over in one of the larger recent deals involving a Toronto-based miner and a Chinese buyer.
The development is likely to draw attention from investors watching cross-border mining transactions, especially as gold price moves continue to shape valuations and merger activity across the sector.
