Bloomberg News | November 19, 2024 |
Fission Uranium’s Patterson Lake South facility, Saskatchewan. Fission Uranium photo
Canada’s federal government is extending a national security review of Paladin Energy Ltd.’s acquisition of Fission Uranium Corp., further delaying a deal that was supposed to close in September.
Australia’s Paladin Energy said Tuesday it received a notice from Canada’s industry ministry that the government’s review period for the transaction, proposed in June, will be extended until Dec. 30. The company also warned that the deal could fall apart.
“In light of the national security review of the arrangement, there can be no certainty that Paladin will be able to obtain ICA clearance in a timely manner or at all,” the company said in a filing, referring to the Investment Canada Act. “Failure to obtain ICA clearance would prevent the arrangement from being successfully completed.”
Paladin’s agreement to buy the Canadian company for C$1.14 billion ($817 million) in stock was announced amid a recovery in uranium prices that’s being driven by countries turning to nuclear energy to meet emissions reduction targets. The deal would make it the third-largest publicly traded uranium producer.
But the takeover has faced several hurdles, including a delayed shareholder vote in August and opposition from Fission’s largest investor, China’s CGN Mining Co. At the same time, Prime Minister Justin Trudeau’s government has increased scrutiny on critical-minerals deals involving foreign buyers.
The delay also threatens an agreement that would mark the first time since 2022 that a large foreign mining company listed its shares on the Toronto Stock Exchange. Canada’s bourse has ensured a yearlong dry spell in new corporate listings.
(By Jacob Lorinc)
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