Canada blocks Chinese Arctic gold mine takeover, citing countrywide security

Canadian officials have turned down Shandong Gold Mining’s bid to receive Canada’s TMAC Means, the organizations said, with the Chinese miner introducing that the sale was blocked on nationwide stability grounds.

As the coronavirus pandemic has caused economic dislocation, countries from Australia to Canada have amplified scrutiny on specials by condition-operate Chinese miners this yr.

Read through Additional: Pitfalls from Chinese takeovers imply Canada requires tougher investment rules: experts

In a filing to the Shanghai Inventory Exchange on Tuesday, Shandong Gold, 1 of China’s major gold miners, mentioned it experienced gained detect of a selection by Canadian authorities on Dec. 18 that it should not progress with the offer.

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In its individual filing late on Monday, TMAC also claimed it been educated of this kind of an get less than the Investment Canada Act.

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Shandong Gold reported in May it would pay out $230 million to receive TMAC, which operates the Hope Bay mine in the northern and strategically significant territory of Nunavut.

Read Far more: Morneau not committing to keeping tougher foreign financial investment scrutiny post-coronavirus

Canada in October released a nationwide protection evaluate of the proposed acquisition that was prolonged past month.

The last main Chinese acquisition blocked by Canada was a proposed $1.51 billion takeover of construction corporation Aecon by China Communications Construction Co Ltd, also on nationwide stability grounds, in Could 2018.

Bilateral relations have been fraught because Canada’s December 2018 arrest of Huawei CFO Meng Wanzhou at the request of the United States.

Canada’s office of Innovation, Science and Economic Improvement, which oversees overseas investment, did not straight away reply to a request for remark.

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Coronavirus outbreak: Freeland says govt will guard Canadian businesses from hostile foreign takeovers

Coronavirus outbreak: Freeland states federal government will secure Canadian providers from hostile foreign takeovers – May possibly 21, 2020

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