Chinese miner Zijin Gold announced a $5.5B deal to buy Allied Gold, representing a ~30% premium to last month’s VWAP but skinnier versus current trading - given the crazy run in metals to start the year.

The transaction comes just weeks after the China deal and builds on a number of Canadian takeouts by Zijin, so regulatory approval feels likely here…

… especially considering Carney’s openness to foreign investment, the $220M break fee, and that the only thing Canadian about Allied is its P.O. box - with all of its gold production in Africa.

You might be interested in…

About Bullpen: Bullpen Finance Inc. publishes content on Canadian markets and provides paid research coverage of select Canadian issuers. Bullpen is paid in cash by covered issuers, does not accept stock or options, does not hold positions in covered securities, and does not conduct investment banking business. Bullpen and LodeRock Advisors Inc. are affiliated; LodeRock provides investor relations services to issuers, some of whom are covered by Bullpen Research. When a post discusses a covered issuer, a specific disclosure appears at the top of the post. This post is published for general information purposes. It is not personalized investment advice and is not tailored to any individual reader’s circumstances. Bullpen is not a registered investment adviser or dealer. For full disclosures, including analyst certification, jurisdictional statements, and conflict of interest policies, please see our Legal & Disclosures section on our website.