GT Voice: Canada's political interventions scupper normal business deal
Source: Global Times Published: 2020/12/23 19:48:40
Photo:XinhuaThe Canadian government vetoed a bid by China's Shandong Gold Mining Co to acquire the asset of TMAC Resources Inc on national security grounds, the Chinese state-owned company confirmed in a stock exchange filing on Tuesday.
Given strained China-Canada relations, the move came as no surprise but still caused some disappointment, especially for the two companies involved that have been trying hard to salvage the deal, amid a hostile geopolitical climate.
For Shandong Gold Mining, all the human and financial resources spent on the deal over the past months have been wasted, while indebted TMAC will have to handle its own financial problems. Even before the release of Canadian government's decision, the miner told the media that it faced difficulty raising enough money to repay the debt due next year.