Allied Gold Announces Termination of Takeover Deal with Zijin Gold but Secures $295M Investment
Allied Gold announced that its planned C$5.5 billion (~US$3.9B) acquisition by China's Zijin Gold has been terminated due to the inability to meet closing conditions before a July 29 deadline. Despite this, Allied secured an investment of $295 million from Zijin as part of a revised agreement. The termination led to a significant drop in Allied Gold’s stock price, with shares falling nearly 16% pre-market on Wednesday. The deal had been seen as a major strategic move for both companies but faced regulatory and operational hurdles that prevented its completion by the deadline.
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Topics: deal termination mergers and acquisitions stock price movement