Chinese mining conglomerate, Zijin Gold, is set to acquire the Canadian mining company, Allied Gold, in a deal worth roughly $5.5 billion.Zijin Gold, one of the world largest producers of gold, copper, and zinc, is partly owned by the Chinese government and has been ramping up its global expansion, with this acquisition yet another in their global consolidation. This announcement also comes as the Canadian government is looking to strengthen trading ties with China, as earlier in the month Canada lowered its tariffs on Chinese made EV's and China lowered tariffs on Canadian canola, beef, and other agricultural products. .This acquisition has sparked some backlash, as a partly state-owned company, Zijin is under some direct control of the Chinese Communist Party.It also doesn't help, though, that Zijin is notorious for their link to Uyghur forced labour, with the company banned from selling goods in the United States due to their link to forced labour amongst the Uyghur peoples in the Xinjiang province of China.Allied Gold, although headquartered in Toronto, operates gold mines exclusively in Africa, with Allied-owned mines in the Ivory Coast, Mali, and Ethiopia.According to the terms of the deal, Zijin will pay $44 a share, a price that Allied Gold CEO Peter Marrone says will offer great value for shareholders. Marrone also mentioned Zijin's global reach, especially highlighting the Chinese conglomerate's footprint in Africa, of which Allied shares.Under the terms of the deal, Allied would have to pay Zijin $220 million if the deal is terminated under certain conditions.The acquisition must be approved by the Canadian government before it goes through.The companies expect the acquisition to be completed by April 2026.
