Judging by the latest round of deal-making, the tone of the takeovers is likely to be hostile.
The frenzy is being fuelled by investors willing to pay a premium for mining stocks that offer exposure to metals used in high-growth sectors, such as electric-vehicle manufacturing. – a reaction to inflation and recession fears. Scotiabank’s analysts say large global mining companies are now shopping for bargains in Canada and elsewhere, because the share prices of many domestic copper and nickel producersThat disconnect explains why future deals may start out hostile – or “unsolicited,” as potential buyers prefer to say.
Jiangxi Copper holds an 18.3-per-cent stake in First Quantum, while China Citic and Zijin Mining own 26 and 14 per cent, respectively, of Ivanhoe. It is easy to imagine a scenario where the federal government would be asked to approve acquisitions of Canadian miners by China-based companies.