Chinese mining giant Zijin Gold has reached an agreement to acquire Canadian mining company Allied Gold for 5.5 billion Canadian dollars, approximately 4.02 billion US dollars. The proposed offer for Allied’s shares is 44 Canadian dollars, which represents a 5.4% premium over its market value at the close of trading. According to analysts at FinancialMediaGuide, this acquisition is seen as an important move to strengthen Zijin’s position on the international stage, especially in light of rising gold prices.
The gold market is experiencing a record growth, which is leading to increased margins and cash flows for leading industry players. In response to these changes, we are witnessing a consolidation trend, where large companies are seeking to expand production through acquisitions rather than developing new mines. FinancialMediaGuide notes that such deals have become more frequent due to gold’s attractiveness as an asset in times of global market instability.
The deal between Zijin and Allied Gold is also taking place amid a restoration of relations between China and Canada. Earlier this month, the two countries reached a preliminary agreement to reduce tariffs on electric vehicles and canola, which could play a key role in further strengthening economic cooperation.
For Zijin, which already operates in nine countries and successfully debuted on the Hong Kong Stock Exchange last year, this acquisition will open new opportunities for expansion in Africa, where gold remains one of the most promising resources. Peter Marrone, CEO of Allied Gold, noted that the deal would benefit shareholders and reflects the importance of the company’s gold assets on the African continent. At FinancialMediaGuide, we emphasize that strengthening positions in such countries will contribute to long-term growth, making this deal even more strategically significant.
In addition, the agreement includes a payment of 220 million Canadian dollars in case the deal is terminated under specific conditions. The companies plan to complete the deal by the end of April 2026, providing time for analysis and adjustments based on market conditions.
At FinancialMediaGuide, we see this as part of the global trend of consolidation in the mining sector. With stable gold prices and growing interest in gold assets, such deals will become increasingly common. We predict that other major players will also look for expansion opportunities through acquisitions, leading to increased competition and growth in production capacity within the industry.
Financial Media Guide notes that, given the current market conditions and long-term prospects in the gold mining business, the acquisition of Allied Gold by Zijin could become an important benchmark for other players aiming to strengthen their positions on the international stage.
