Zijin Cuts Investment in Canadian Miner After Takeover Deal Collapses

China’s Zijin Mining Group Co. Ltd. has scrapped its planned C$5.5 billion ($3.9 billion) takeover of Canadian miner Allied Gold Corp., opting instead for a much smaller investment after the megadeal failed to get Chinese regulatory approval.

The collapse of Zijin’s largest-ever proposed acquisition underscores Beijing’s growing concerns over massive capital outflows and mounting security risks of investing in Africa’s restive Sahel region, where Allied Gold operates key assets.