China’s Shandong Yulong Gold said on Thursday it intended to pull out of a deal to buy Australian gold miner Barto Industry Co, citing recent changes in the international economy and macro environment.
The company announced on March 5 it would acquire Barto from fellow Chinese firm Shandong Tianye by assuming the target company’s debt of 1.22 billion yuan ($188 million).
In a filing to the Shanghai Stock Exchange, Yulong said it had carefully studied the transaction “in light of the recent changes in the international economic situation and external macro environment” and decided to negotiate a termination to protect the interests of the company and its shareholders.
It did not elaborate on the rationale for the pullout, which came a day after already tense Chinese-Australian relations worsened with Canberra’s cancellation of two agreements to cooperate with Beijing’s flagship Belt and Road trade and infrastructure initiative.
Earlier this week, China’s Chifeng Jilong Gold Mining walked away from a deal to buy the Bibiani gold mine in Ghana from Australia-based Resolute Mining, saying it had not received timely information about a termination of the mining lease.