Zijin Gold to acquire Allied Gold in a sweeping cash transaction valued at about C$5.5 billion ($4.02 billion), the companies announced Monday, as the Chinese mining heavyweight accelerates its global expansion during a historic rally in gold prices.
The agreement underscores a broader consolidation wave rippling through the mining sector. With bullion prices hovering near record highs, major producers are increasingly opting to buy established assets rather than sink years into developing new mines from scratch.
A Deal Forged in a Booming Gold Market
Premium offer and market reaction
Under the terms of the deal, Zijin will pay C$44 per share for Allied Gold, representing a premium of roughly 5.4% over the Canadian miner’s most recent closing price. Allied’s U.S.-listed shares climbed nearly 4% in premarket trading following the announcement, signaling investor approval.
The transaction lands as gold’s price surge continues to swell miners’ margins and cash flows, fueling a buying spree for long-life, high-quality assets.
