Zijin Gold International Co. has ended its $5.5 billion planned acquisition of Allied Gold Corp., citing delays in receiving regulatory approval from China. Instead of the full takeover, Zijin has agreed to purchase a new convertible debenture from Allied Gold for $295 million. This development was shared by Allied's chief executive, Peter Marrone, who expressed that China was "dragging its feet" on approving the large transaction.
The initial agreement stipulated that Zijin would pay C$44 per share for Allied Gold, representing a premium of approximately 27% over Allied Gold’s 30-day volume-weighted average price on the TSX. Shareholders of Allied Gold had overwhelmingly approved the buyout, with 99.5% of votes cast in favor of the transaction. The deal was originally expected to close by late April 2026.
Analyst Ingrid Rico from Stifel had previously downgraded Allied Gold from "Buy" to "Hold" with a price target of C$44, down from C$45, in anticipation of the acquisition. The termination of the $5.5 billion deal and the shift to a $295 million stake acquisition represent a significant change from the initial, unanimously supported, full acquisition plan.
