Zijin Mining of China Abandons its Planned Acquisition of Platmin Congo
Zijin Mining Group Co., saddled with regulatory probes in China over a toxic spill, said it called off the acquisition of Platmin Congo Ltd.
The company has allowed the deal to expire after failing to complete the purchase by the Aug. 31 deadline, the Shanghang, Fujian province-based company said in a statement to Shanghai’s stock exchange today.
Chairman Chen Jinghe’s plan to make at least two overseas acquisitions this year was hampered by regulatory probes and cleanup for the acid-laced waste leakage on July 3 that polluted a river in Shanghang, killing enough fish to feed 72,000 residents a year.
Zijin and state-backed China-Africa Fund offered in May to pay $284 million for Platmin to gain copper and cobalt assets in Congo. Today’s statement doesn’t explain why the parties allowed the deal to expire rather than extend the deadline.
The stock rose 1.2 percent to HK$5.74 in Hong Kong today, before the announcement. In Shanghai trading, it rose 0.8 percent to 6.46 yuan.
To contact the reporter on this story: Yu Xiao in Beijing at firstname.lastname@example.org