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M&A

Zijin-Allied Gold takeover collapses, replaced by $295m stake purchase

Cross-border regulatory hurdles killed the C$5.5bn buyout before its July deadline; Zijin instead bought a 9.2% shareholding at a premium

4 August 20262 min read

The takeover of Allied Gold Corporation by China's Zijin Gold International, agreed in January 2026 at a value of roughly C$5.5bn, was terminated before its 29 July 2026 outside date after the companies concluded that cross-border regulatory approvals would not be secured in time. Rather than walk away entirely, the two sides announced a smaller transaction: Zijin agreed to subscribe for about 12.8 million new Allied Gold shares at C$32.55 each in a private placement, giving it a 9.2% stake in the company for approximately $295m.

From takeover to strategic stake

The private placement price represented a premium to Allied's trading level at the time, and the deal was structured to close on or around 10 August 2026. For Zijin, the stake preserves a foothold in Allied's African gold portfolio, which includes the Sadiola mine in Mali, the Bonikro and Agbaou operations in Côte d'Ivoire, and the Kurmuk project in Ethiopia, without requiring the full change-of-control approvals a 100% takeover would have triggered.

Ethiopia's stake in the outcome

The collapse of the full takeover came as Kurmuk, Allied's flagship Ethiopian development project, was approaching first gold production, reported for August 2026. Ethiopian officials had publicly backed the original Zijin transaction, underlining how significant the mine has become to the country's export and foreign investment plans, and the switch to a minority investment leaves Allied Gold in direct control of that production ramp-up rather than folding it into a Chinese-owned group.

What it means

The episode illustrates the growing difficulty large Chinese acquirers face in closing control transactions for African mining assets that also sit under Western listing rules and foreign-investment screening regimes, even when the underlying commercial logic and target-board support are not in question. Allied Gold walks away with fresh capital and a strategic shareholder rather than a new parent, while Zijin retains an economic interest in three African gold operations it can potentially build on later.

The episode leaves open the possibility that Zijin could revisit a fuller acquisition once the regulatory landscape becomes clearer, but for now Allied Gold retains its independence and its own strategic priorities over how to develop Kurmuk and its other African assets going forward.

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