Globe says Paladin, Fission Uranium deal in limbo
2024-11-11 09:27 ET - In the News
The Globe and Mail reports in its Monday, Nov. 11, edition that investors are uncertain about the success of Australia-based Paladin Energy's proposed acquisition of Fission Uranium due to a national security review by Ottawa, focusing on Chinese influence in the deal. The Globe's Niall McGee writes that in June, Paladin agreed to buy Fission for $1.14-billion in an all-stock transaction. Paladin initially aimed to close the deal by September, but in October, it was announced that Canadian Industry Minister Francois-Philippe Champagne is extending the review under section 25.3 of the Investment Canada Act, citing potential national security concerns. In 2022, Mr. Champagne increased oversight of acquisitions of Canadian critical minerals firms by Chinese state-owned enterprises, allowing approvals only under exceptional circumstances due to China's dominance in battery minerals like lithium and cobalt. Since then, he has vetoed several such acquisitions. Mr. McGee notes that Paladin has strong ties to China via its Langer Heinrich Mine in Namibia, which is 25-per-cent owned by CNNC Overseas Uranium Holding, a subsidiary of the state-owned China National Nuclear Corp. CNNC is also Paladin's largest customer.