Shandong Gold claims Canada has rejected TMAC acquisition | Reuters | Company

(Reuters) -The Canadian govt has turned down Shandong Gold Mining’s bid to acquire Canada’s TMAC Assets, the businesses stated, with the Chinese miner introducing that the sale was blocked on nationwide safety grounds.

As the COVID-19 pandemic has caused economic dislocation, nations from Australia to Canada have amplified scrutiny on deals by point out-operate Chinese miners this year.

In a submitting to the Shanghai Stock Exchange on Tuesday, Shandong Gold, a person of China’s most significant gold miners, stated it had acquired observe of a determination by Canadian authorities on Dec. 18 that it must not proceed with the offer.

In its own filing late on Monday, TMAC also explained it been knowledgeable of this sort of an purchase beneath the Expense Canada Act.

Shandong Gold reported in May perhaps it would spend C$230 million ($179 million) to purchase TMAC, which operates the Hope Bay mine in the northern and strategically essential territory of Nunavut.

Canada in October released a countrywide safety overview of the proposed acquisition that was extended final thirty day period..

The previous big Chinese acquisition blocked by Canada was a proposed C$1.51 billion takeover of design organization Aecon by China Communications Design Co Ltd, also on countrywide safety grounds, in May well 2018.

Bilateral relations have been fraught because Canada’s December 2018 arrest of Huawei Technologies Co Ltd Main Money Officer Meng Wanzhou at the ask for of the United States.

Canada’s office of Innovation, Science and Economic Improvement, which oversees foreign financial commitment, did not quickly respond to a ask for for comment.

($1 = 1.2865 Canadian pounds)

(Reporting by Tom Daly extra reporting by Jeff Lewis in Toronto Editing by David Goodman and Barbara Lewis)