Zijin’s $4B acquisition of Allied Gold faces delay in China: FT

The proposed $4 billion acquisition of Allied Gold (TSX, NYSE: AAUC) by China’s Zijin Gold is said to be facing delays due to internal concerns over valuation and risks, the Financial Times said on Friday.

According to the FT report, Chinese regulators are having doubts over the transaction, namely the premium that Zijin is paying and jurisdiction risks associated with Allied’s assets, leading to a delay in approving the deal.

In December, Zijin Gold, fresh off a strong listing debut in Hong Kong after spinning out of Zijin Mining Group, made its first big move with the proposed C$5.5 billion (approximately $4 billion) cash offer for Allied.

The deal, if completed, would add three producing/near-production assets to Zijin’s portfolio: the Sadiola mine in Mali, a large mining complex in Côte d’Ivoire and the Kurmuk project in Ethiopia. The first two produced nearly 380,000 oz. of gold in 2025, exceeding Allied’s expectations, while the Kurmuk mine is set to produce its first gold this year.

Chinese concerns

Despite Allied’s shareholders approving the transaction in April, those at China’s National Development and Reform Commission are unsure of the valuation, the FT sources said, given the approximate 5% premium that Zijin would pay. The Commission is also said to be concerned about the mining risks in Mali, which accounts for about half of Allied’s gold output.

As of Friday, Allied Gold traded at a market capitalization of C$4.4 billion in Toronto. The stock fell about 6.5% after news of the delay.

“There is strong industrial and commercial logic for this transaction, and both parties continue to work diligently towards closing,” an Allied spokesperson told FT.

To accommodate the delay, the outside date of completion has been extended by a further two months to the end of July, the gold miner said in a press release on Friday, while announcing approvals by both Canadian and African regulators of the deal.

These regulatory approvals and clearances represent important milestones as the parties continue to advance the transaction to completion, it said.