Fosun Investment company tries hard to bargain some of the Russian gold mining company. But something makes their approaches ineffective. It seems that the quest for GV Gold mining company is just the latter addition to the previously failed attempts. Fosun tried to get into the stake of the biggest “Polus” operation. Now Fosun appears to be out of the race for medium-sized but quite successful GV Gold.

With gold price rising month after month and the precious metals returning as a full-fledged reserve currency the competition for major mining operations rise. GV Gold – a full-cycle gold mining company is up for sale. And the race is tight, Talk Finance points out. Not everyone is still on pace. Chinese company Fosun is particularly unfortunate: it hasn’t managed to purchase any major assets in gold mining, despite they tried hard.

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.

Mayskiy List Ltd, which represents Fosun Investment will likely recall the permission request from the state anti-monopoly service. It was filed in June 2019. The main reason for the recall is the disagreement on the PAO Vysochayshiy asset evaluation. Those disagreements were intensified with the price on the gold growth. The RBK sources cite that another reason for disagreement is GV Gold weak financial performance.

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.

GV Gold representative told RBK that the talks with Fosun are still continuing and the papers were sent to the government committee. Fosun refused to comment on the topic. Fosun is not the alone in the race to acquire GV Gold. The media names Kazakhstani businessman Kenes Rakishev and Russian billionaire Roman Trotsenko as potential buyers.

Trotsenko said earlier that he is ready to buy the GV Gold mining company could Chinese investors step aside. Kenes Rakishev had previous experience and expertise with managing gold mining operations in Russia.