Glencore hits back with second counter offer for Rio Tinto’s Coal & Allied

Glencore hits back with second counter offer for Rio Tinto’s Coal & Allied

Glencore has come in with a second counter offer of US$2.675 billion cash for Rio Tinto’s Coal & Allied, raising Yancoal’s bid by $225 million.

The proposal is the latest instalment of a bidding war between the Swiss and Chinese firms over Rio Tinto’s Hunter Valley coal assets in Australia.

Glencore says its bid is fully payable in cash upon completion and comes with very little regulatory risk and provides ‘greater funding certainty’ to Rio Tinto shareholders.

“We believe the Glencore Offer satisfies the criteria for a ‘superior proposal’: it delivers substantially greater value to Rio Tinto shareholders and low deal completion risk,” a Glencore statement said.

Rio Tinto will give the proposal the appropriate consideration and will update the market prior to the general meeting held in London on Tuesday morning.

If the Glencore proposal is deemed to be a superior offer by the Rio Tinto board then Yancoal will have two business day to present a counter offer.

@RGNonline