TMAC Resources Inc said the Canadian government on Monday rejected a proposed acquisition of TMAC by Shandong Gold-Mining Co.(Shandong Gold-Mining Co.,600547.SH,SH), which owns a mine 120 miles north of the Arctic Circle.
“As a result, the transaction between TMAC and Shandong Gold will not move forward,” TMAC said in a statement, “and TMAC and Shandong Gold are in discussions to terminate the transaction.”
Shandong Gold proposed in May to buy TMAC for nearly $150 million, but that drew almost immediate fire from opponents who said it would give a Chinese state-owned company too much access to the Canadian Arctic.
Those opponents include former security and military officials who are skeptical of the Chinese Communist Party’s intentions in the sensitive region.
The Canadian government has previously said it would review the deal because Shandong Gold is a state-owned company.
Canada’s veto of the deal comes as the country and the Chinese Communist Party remain at odds over Canada’s 2018 arrest of Meng Wanzhou, the chief financial officer of Chinese tech giant huawei Technologies Co. The Chinese Communist Party has retaliated by jailing Canadians Michael Kovrig and Michael Spavor.
Recent Comments