Paladin Energy (ASX:PDN) has received approval from Canada’s competition watchdog to proceed with the planned acquisition of Fission Uranium (TSX:FCU).
The transaction required clearance under the Investment Canada Act and Competitive Act.
The larger company will be a global uranium producer listed on the ASX and TSX with a robust portfolio of production, development, and exploration assets, according to Paladin.
Paladin, which has a market capitalisation of $4.18 billion, will acquire all of Fission’s shares in exchange for 0.1076 Paladin shares for each Fission share held. This values Fission Uranium at C$1.14 billion ($1.23 billion), as previously reported.
On completion of the acquisition, Fission shareholders will own 24% of Paladin, which will have a pro-forma market capitalisation of $5.17 billion.
The transaction requires approval of over 66% of the votes cast by Fission shareholders voting at the upcoming special meeting.
Fission directors and members of senior management have entered into voting support arrangements with Paladin, in which they have agreed to vote in favour of the acquisition at the meeting.
Paladin says this deal is expected to be completed in the September quarter of this year, subject to satisfying all of the remaining conditions.
Paladin Energy is a producer and explorer focused on uranium production in Africa and its Langer Heinrich Mine in Namibia.
Fission Uranium owns and develops the near-surface Triple R uranium deposit.
Write to Aaliyah Rogan at Mining.com.au
Images: Fission Uranium
