Yancoal snaps up Mitsubishi’s interest in Hunter Valley assets

Yancoal snaps up Mitsubishi’s interest in Hunter Valley assets

Yancoal Australia has confirmed its purchase of Mitsubishi Development’s 32.4% stake in the Hunter Valley coal mining division, which has become subject of a bidding war between Yancoal and Glencore.

The Chinese-controlled firm will pay a total of US$940 million for Mitsubishi’s minority interest in the Australian coal mines, with the tag-along offer coming just three days after Glencore made a bid of $920 million for the same stake.

While Yancoal has now activated a binding agreement for the purchase of Mitsubishi’s stake, the battle is set to continue between the two miners for majority ownership of Rio Tinto’s Coal & Allied unit.

In January, Yancoal had a $2.45 billion bid accepted for the assets, however the terms of the deal allowed Rio to entertain offers from further parties, which opened the door for Glencore’s bid.

The multi-focused miner made an increased offer in the region of $2.55 billion late last week. Yancoal have yet to respond with a counter offer for the Coal & Allied unit.

@RGNonline