Barrick deal : A lone setback for China's Gold quest
Major Gold companies such as Shandong Gold, Zijing Mining and Zhaojin Mining are already in the fray for overseas takeovers, analysts said.
Contrary to China's plans to acquire more foreign gold assets, country's largest gold producer,China National Gold Group Corp confirmed ending talks with Canada's Barrick Gold over the possible takeover of it's unit in Africa, for the purpose of risk prevention.
According to CNGGC, the company will not continue talks with Barrick Gold about the takeover after weighing the potential returns to the company. Analysts said the failure of the takeover will not affect the group's existing plan of going global.
Earlier, Barrick Gold also announced the end of discussions with China National Gold regarding selling its stake in its unit African Barrick Gold.
In a statement, Barrick Gold said discussions were part of our ongoing efforts to identify opportunities to optimize our portfolio, however we are approaching this in a prudent and disciplined manner and will only proceed with opportunities that generate acceptable value for Barrick.
Barrick Gold, which holds a 74 percent stake in African Barrick, said in August it was in preliminary talks with China National Gold about the possible sale of all or part of its stake.
The cost of the proposed acquisition was $3.4 billion, lower than the market speculation of $3.9 billion, the Guangzhou-based 21st Century Business Herald reported Tuesday, citing an unnamed source.
Meanwhile, China continued to acquire new gold assets abroad. On Wedneasday China's Hanking Gold Mining said it had acquired St Barbara's Southern Cross mine in the WA goldfields for $22.5 million.
Major Gold companies such as Shandong Gold, Zijing Mining and Zhaojin Mining are already in the fray for overseas takeovers, analysts said.
Sumber : Google
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