Bloomberg reported that Aluminum Corp of China Ltd dropped plans to buy a 30% stake in Mongolian coal exporter Winsway Coking Coal Holding Ltd for HKD 2.39 billion (USD 308 million), its second failed acquisition this month.

The agreement was terminated because it won’t be able to get approval from governments and regulators by a September 30 deadline. Mongolia passed a law this year restricting foreign state owned companies from controlling key assets.

The decision is the second time this month Beijing based Chalco has abandoned a bid for a Mongolian coal miner because it wasn’t able to get regulatory approvals. The company said on September 3 it terminated a CAD 925 million offer for a stake in SouthGobi Resources Ltd.

According to a statement on the government’s website, foreign companies seeking more than 49% of strategic assets in Mongolia need approval from Parliament. The restriction means Mongolia joins Indonesia and Argentina in seeking to control ownership of resource assets to secure its economic future.

Source - Bloomberg

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