With gold price rising and the precious metal returning as a valuable mean of security the fight for decent mining operations intensifies. GV Gold – a full-cycle gold mining company is up for sale. And the competitions is very tight, Talk Finance points out.
Fosun investment umbrella corporation does not intend to buy GV Gold mining company also known as “PAO Vysochayshiy”. Chinese investors plan to step back from the competition for GV Gold, RBK business media considers citing its own sources. Fosun is not the only one potential buyer of GV Gold. Kenes Rakishev from Kazakhstan and Roman Trotsenko from Russia showed interest in acquiring the mining company.
GV Gold maintains active mining operation in Yakutia and Irkutsk regions of the Russian Federation. The preliminary deal was evaluated to be as high as 1 billion USD according to Bloomberg.
It’s not the first time that Fosun was tried and failed to acquire the gold mining operation in Russia. In July 2017 the company approached to the major Russian gold miner, “Polus”. Fosun wanted to buy 15 percent share of the Polus from the mining company owner, Said Kerimov, the son of Suleiman Kerimov. The share was valued 1.4 billion USD. However the contract wasn’t signed for the reasons unknown to the experts. There was some info circulating that the deal collapsed because of some conditions weren’t met.
Fosun was unable to establish any major mining operation in Russia. Chinese are harsh in bargaining, according to Maxim Khudalov, the AKRA risk assessment group leader. It is no wonder that the deal was collapsed. Khudalov evaluates GV Gold to be $850 millions – $1 billion worth.
Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at nicholas.dekramer@economicinform.com
