@@@
캡션달기 테스트:alt=””
@@@
[The Guru = Jin Yoo-jin Reporter] The Canadian government has extended its national security review of the acquisition deal between Australian uranium company Paladin Energy and Canadian uranium firm Fission Uranium, putting the brakes on the transaction once again. Initially proposed in June, the deal was expected to finalize in September, but the prolonged review process has cast doubt on its completion.
Paladin Energy announced on the 19th (local time) that it received notification from Canada’s Ministry of Industry extending the review period until December 30. Paladin expressed concern that “the deal might not receive approval under the Investment Canada Act in a timely manner or at all due to the national security review,” adding, “If we do not receive approval, the transaction will not go through.”
Previously, Paladin Energy announced in June that it would acquire Fission Uranium for CAD 1.14 billion (approximately $840 million). This deal emerged as uranium prices surged, driven by a renewed interest in nuclear power worldwide. Paladin aimed to become the third-largest publicly listed uranium producer through this acquisition.
However, the transaction has faced several hurdles. In August, a shareholder vote was postponed, and there was opposition from CGN Mining, a subsidiary of China’s state-owned nuclear power company and Fission’s largest shareholder. The Canadian government has also tightened regulations on foreign acquisitions of its key mineral companies, applying stricter national security reviews, particularly for transactions linked to China.
Recently, the price of enriched uranium, used as fuel in nuclear power plants, has skyrocketed. Analysts attribute this surge to increased demand for uranium due to the revival of nuclear power, alongside a supply shortage exacerbated by the West’s ban on uranium imports from Russia. “Refer to our October 5, 2024 report on Canada, which addresses the halt in overseas sales of uranium companies.”
This delay in the transaction is likely to negatively impact the Toronto Stock Exchange (TSX). The TSX had anticipated the first new listing of a large foreign mining company since 2022, but if this deal falls through, the exchange may continue to experience a new listing drought that has persisted for over a year.
Should Paladin Energy successfully acquire Fission Uranium, it would dual-list in Australia and Canada, positioning itself as a major player in the global uranium market, accounting for 10% of worldwide production. However, ongoing national security reviews by the Canadian government have increased uncertainty surrounding Paladin’s plans. {vi19}
Most Commented