The austerity in the mining sector has led to more measured mergers and acquisitions (M&A) activity. Companies have slowed down their deal activities since last year, but Chinese gold miners remained active on the acquisition front. To capitalize on the strong domestic demand for gold, Chinese companies are enhancing their gold resource base by acquiring overseas as well as domestic gold mines.
In 2012, China’s second largest producer, Zijin Mining Group, bought Australia-based Norton Gold Fields and the third largest gold producer, Shandong Gold Group, acquired majority stake in Australia’s Focus Minerals. Australia was a preferred target considering it is the world's second-largest gold producer after China. In China, one deal worth mentioning was of Shandong Gold Mining buying Shandong Shengda Mining for $590 million in Jun 2012.
www.zacks.com/commentary/29432/...gold-update-outlook-oct-2013
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