Zijin Gold International's $4bn takeover of Canada's Allied Gold faces regulatory hurdles from China's National Development and Reform Commission. The powerful Beijing authorities question the premium offered and geopolitical risks associated with Allied's gold mine in Mali, where political violence has disrupted operations. This delay threatens the Chinese miner's first major deal since its blockbuster IPO.

The all-cash transaction, agreed in January when gold prices peaked above $5,500 per troy ounce, now encounters a challenging environment. Bullion has since fallen to about $4,500, while Allied's shares dropped 13% since Mali's violence. Zijin offered C$44 per share, representing a 27% premium to Allied's pre-deal trading price. The original closing deadline of May 29 approaches with uncertainty.

The NDRC holds significant power over global resources deals, and its approval is mandatory for Zijin's international expansion. Market already prices in deal collapse, with Allied's shares trading below the offer price. Both companies continue working toward closing, but geopolitical concerns and regulatory scrutiny may derail Zijin's ambitions to expand its overseas gold assets across Africa, South America, and Australia.