China's Chalco scraps bid for 60% of Mongolia coal mining firm SouthGobi
September 5, 2012, 11:29 am TWN
SHANGHAI -- China's biggest aluminum producer Chalco said it had scrapped a planned bid to take a majority stake in a Mongolian coal miner, after Mongolia's government opposed the deal.
Chalco had aimed to acquire up to 60 percent of miner SouthGobi's shares in a deal valued at HK$7.2 billion (US$928 million).
“The proposed proportional takeover transaction has minimal prospect of obtaining the necessary regulatory approvals within an acceptable timeframe,” Chalco said in a statement to the Hong Kong stock exchange, where it is listed.
The Chinese company had terminated the agreement to buy out SouthGobi's biggest shareholder, Turquoise Hill Resources Ltd. (formerly Ivanhoe Mines), said the statement released late on Monday.