Zijin Gold International Co.'s proposed $5.5 billion (C$5.5 billion) acquisition of Allied Gold Corp. is facing significant delays, with China reportedly dragging its feet on approving the transaction. Allied Gold's chief executive, Peter Marrone, expressed concern about the jeopardy of the deal. The transaction, initially estimated at $4 billion, has been a subject of ongoing regulatory scrutiny.
Despite the regulatory hurdles in China, Allied Gold shareholders overwhelmingly approved the buyout. At a special meeting, 99.54% of the votes cast were in favor of the transaction. A total of 76,556,033 shares were voted, representing 61.14% of the total issued common shares, indicating strong shareholder confidence in the acquisition.
Analysts have reacted to the developing situation. Stifel analyst Ingrid Rico downgraded Allied Gold to Hold from Buy, lowering the price target to C$44 from C$45. This adjustment reflected the agreement for Zijin Gold International to acquire all outstanding shares of Allied Gold at C$44 per share in cash. The outside date for completing the arrangement was extended to July 29, 2026, with both parties stating their commitment to fulfilling the conditions during an update in June 2026.
Allied Gold has continued its operations, focusing on advancing its mining assets, extending mine life, and optimizing its Côte d'Ivoire operations, as well as delivering on commitments to host-nation governments and local stakeholders. This continues in parallel with ongoing efforts to progress the arrangement with Zijin Gold. Allied Gold operates a portfolio of three producing assets and development projects located in Côte d'Ivoire, Mali, and Ethiopia.
