Ziijin will pay $5.50 per share, a 13 per cent increase on Continental’s closing stock price Friday. The deal is subject to approval from Canadian and Chinese regulators. (The Logic)
Talking point: This sale is significant both for Ottawa-Beijing relations as well as the growing number of deals in Canada’s mining sector. For the former, the deal comes about 18 months after Ottawa blocked the $1.5-billion takeover of Aecon Group by a Chinese firm. On Sunday, newly minted foreign affairs minister François-Philippe Champagne called for a new “framework” for Canada-China relations. The Continental deal will now become part of the delicate talks between the two countries, which are also navigating U.S. pressure on Canada to ban Huawei, Chinese restrictions on Canadian meat and canola producers, as well as the arrest of Canadians in China and Huawei’s CFO in Canada. On the deal side, this offer comes one week after Kirkland Lake bought Detour Gold for $4.9 billion. Also this year, Barrick Gold bought Randgold Resources for about $8 billion and Newmont Mining paid about $13 billion for Goldcorp.