[Global Times Special Correspondent Liu Yun in Canada, Global Times Correspondent Ni Hao] According to a report from The Wall Street Journal on the 22nd, the Canadian government rejected one of China’s largest gold mining companies, Shandong Gold, on Monday’s proposal to acquire Canadian gold producer Temec Resources. .
This news was confirmed by Shandong Gold later on the 22nd. The company, listed on the Shanghai Stock Exchange, issued a statement stating that the parties had decided to stop the acquisition due to the lack of official Canadian approval.
On the evening of May 8 this year, Shandong Gold issued an announcement that it plans to acquire 100% of the shares of Canadian gold producer Temec Resources for RMB 1.153 billion.
According to the Wall Street Journal, Temec owns a mine 120 miles north of the Arctic Circle. After the two companies disclosed the acquisition plan, they immediately drew criticism from opponents, believing that this move would make a Chinese state-owned company too much. Into the Canadian Arctic.
According to the report, opponents include former Canadian security and military officials who claim to be skeptical of China's intentions in sensitive areas.
The United States has said that China may show its strength in this sensitive area.
Reuters said on the 22nd that Canada had blocked the acquisition of Canada's largest construction company Aecon by a subsidiary of China Communications Construction Group on the grounds of "national security" in 2018.
According to the announcement issued by Shandong Gold on the evening of the 22nd, on June 12 this year, the Canadian Fair Competition Bureau issued a "no action" letter on this transaction.
On June 26, the transaction was approved by more than 97% of Temac shareholders.
On June 30, the Supreme Court of Ontario, Canada approved the transaction.
But then the transaction suddenly changed.
On July 20, the Investment Review Agency of Canada began to consider the security review of the transaction and announced on October 12 that it had entered the national security review stage.
On December 22, Shandong Gold received a decision made by the Canadian side on December 18, which said that it had suspended the relevant investment acquisition case for the purpose of protecting national security.
It is reported that Temec's financial situation is poor. If the acquisition is not approved by the Canadian government, the company has almost no way to raise enough funds to repay debts and maintain operations.
Shandong Gold has previously stated that after the completion of the acquisition, it will unreservedly invest in technology, capital and human resources to comprehensively strengthen the production and operation management of the acquired company, further improve the level of operation and profitability, and enhance the value of assets.
The company told the Wall Street Journal in July this year that it was a pure gold mine transaction in the eyes of Shandong Gold.
The Ministry of Commerce of China has clearly opposed the establishment of obstacles to foreign investment by relevant countries on the grounds of "national security." On the Arctic issue, the Chinese Ministry of Foreign Affairs stated earlier that China has always participated in Arctic affairs with an open, cooperative, and win-win attitude. "We don't play a small abacus of geopolitical games, and we don't engage in a closed exclusive circle."