http://www.zerohedge.com/news/2014-06-19/china%E2%80%99s-largest-gold-company-seeks-become-kingmaker-gold-market
China National Gold Group Corporation or China Gold, China’s largest gold conglomerate with primary interests in mining and also refining, is on the hunt for global acquisitions and partnerships, the company's president said yesterday.
The state owned Chinese gold miner and producer and retailer of custom-designed gold and silver bars, which was founded in 2003, appears to have designs on becoming a kingmaker in the global gold industry.
China is the world's biggest producer, importer and buyer of gold, giving the country increasing sway over prices, output and the global gold market in general. The country's official gold consumption increased to 1,176 metric tons last year while its production was 428 metric tons. This is encouraging overseas acquisitions.
China Gold’s President Dr. Xin Song said he believes that long term demand for gold in China will remain strong as a younger generation buys gold online, even if demand falls slightly this quarter from the first.
Acquisitions by China Gold would revive a mostly moribund market for gold mergers and acquisitions. This has been seen in both the mining and investment segments of the gold market. Indeed, the German refinery and bullion wholesaler Degussa’s acquisition of small UK bullion retailer, Sharps Pixley, in November 2013 was one of the only deals seen in the investment sector in recent years.
Mr. Song said that his company is searching for opportunities in the gold and silver markets. "The growing strategy is very clear: We are going out looking at things globally," he said through an interpreter. "We have a few opportunities, at different stages."He said the company's current preference is for assets in countries near China, such as Mongolia, Russia and in Central Asia. It also is looking for acquisitions in developed countries such as Canada, Australia and the U.S.
A third option is in developing countries, including in Africa and South America. "The political situation has to be stable," he said......