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Published
Oct 5, 2009
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Australian regulator approves Sino Gold takeover

By
AFP
Published
Oct 5, 2009

SYDNEY — Australian regulators Monday 5 October gave the go-ahead to a 1.76 billion dollar (1.54 billion US) takeover of gold miner Sino Gold by Canada's Eldorado Gold Corporation, Sino Gold said.


Photo: AFP

The company said the Foreign Investment Review Board had given unconditional approval for the deal -- which comes amid rising concerns about the level of foreign investment in Australia's resources sector.

Sino Gold, which operates two mines in China and has another in development in that country, has backed the deal which the companies say will create a gold miner with a market value of about 6.8 billion Australian dollars.

The companies said the transaction would establish Eldorado as "the unequivocal leader among international gold producers in China, the world's largest gold producing country".

Eldorado, which launched the bid in August, has offered 0.55 of its shares for each Sino Gold share. The deal, which is scheduled to be completed by December, still requires the approval of Sino Gold shareholders.

-- Dow Jones Newswires contributed to this story --

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