Zijin ends Allied Gold takeover, takes 9.2% stake

Allied Gold and China’s Zijin Gold have terminated their arrangement agreement after concluding that outstanding closing conditions could not reasonably be satisfied by the outside date of July 29, 2026. The deal, announced earlier, would have seen Zijin acquire Allied in a transaction valued at approximately C$5.5 billion, or C$44 per Allied share, equivalent to about US$3.9 billion. With the outside date reached and key conditions unmet, the takeover will not proceed.

Both companies indicated that delays in obtaining required Chinese regulatory approvals were a central factor behind the decision. They also pointed to broader external factors affecting cross‑border transactions of this scale, which contributed to the inability to close the deal on time. As a result, the previously planned full acquisition structure has been abandoned.

In place of the terminated takeover, Zijin Gold has agreed to make a strategic equity investment in Allied Gold. Zijin will subscribe for approximately 12.8 million common shares of Allied at a price of C$32.55 per share. The subscription is expected to generate aggregate proceeds of about US$295 million, or roughly C$416.6–C$417 million, and will give Zijin an interest of about 9.2% in Allied.

The new investment will be carried out through a private placement. Completion is subject to the approval of the Toronto Stock Exchange and the New York Stock Exchange. Closing is expected to occur on or about Aug. 10, 2026, provided regulatory and exchange approvals are obtained. The subscription shares will be issued under applicable Canadian and U.S. securities laws and will carry a statutory Canadian hold period of four months and one day.

Financial markets reacted negatively to the termination of the C$5.5 billion acquisition. Allied Gold’s shares fell sharply in early trading following the announcement, with reported declines ranging from about 16% to 23%. The price move reflects investor reassessment of Allied’s prospects without the previously agreed takeover premium.

Despite the loss of the full acquisition, the new structure preserves a material financial inflow and a strategic relationship between the two companies. The about 9.2% equity stake by Zijin provides capital to Allied while maintaining its status as an independent public company. Both parties now shift from a pending control transaction to a minority investment framework shaped by regulatory and cross‑border constraints.