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Sept. 3, 2012, 6:26 p.m. EDT

Chalco gives up on bid to buy Mongolia's SouthGobi

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By MarketWatch

BEIJING--Aluminum Corporation of China Ltd. /zigman2/quotes/208051344/composite ACH -3.52% , also known as Chalco, has ended its bid to acquire Mongolia-focused coal producer SouthGobi Resources Ltd. , the deal's would-be seller, Turquoise Hill Resources Ltd. , said Monday.

The acquisition would have significantly enlarged China's role in its landlocked neighbor's critical resources sector, but ran aground because of political opposition in Ulan Bator and China's economic slowdown.

SouthGobi Chief Executive Officer Alexander Molyneux told Dow Jones Newswires on Friday he believed the deal wouldn't be concluded since Chalco hadn't contacted SouthGobi for more than a month.

"Turquoise Hill and Chalco have concluded that the proposed transaction has minimal prospect of obtaining the necessary regulatory approvals within an acceptable timeframe," Mongolia-focused miner Turquoise Hill said in a statement.

The Chinese metals major was to have taken over Turquoise Hill's majority stake in SouthGobi for $920 million. The deadline for Chalco's offer was set to expire Tuesday. Chalco wasn't immediately available for comment Monday.

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Nov. 25, 2020 2:31p
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