Mining stocks fall after Canadian government tightens takeover rules
THE CANADIAN PRESS/Spencer Colby
Innovation Minister Francois-Philippe Champagne said he will prohibit takeovers of the nation’s mining companies
Canada’s mining stocks fell across the board on Monday after the Canadian government announced it will restrict foreign takeovers in the sector.
The Canadian government last week announced it will only approve foreign acquisitions of companies with critical mineral operations under the “most exceptional of circumstances.”
Analysts at Scotiabank issued a report warning that the move will hurt the sector’s ability to raise money, according to Bloomberg News.
Stock of Cameco, one of the world’s largest uranium producers, dropped 2.3 per cent on Monday. Shares of Teck Resources fell 3.2 per cent.
