Yanzhou Coal Gets Approval to Buy Rio Tinto's Australia Coal Business
Yanzhou Coal Mining Co. Ltd. on Monday said it's $2.45 billion deal to buy a large part of Australian coal business of Rio Tinto PLC has got regulatory approvals from Chinese authorities.
Yanzhou Coal said it has received approval from China's National Development and Reform Commission and the country's Ministry of Commerce for the deal.
The acquisition of Rio Tinto's Coal & Allied Industries Ltd. through its Australian unit--Yancoal Australia Ltd--has already got the nod from Australia's Foreign Investment Review Board.
On Monday, Yanzhou Coal also noted Glencore PLC's offer to buy Coal & Allied Industries and said it will have a right to match a "superior" offer.
Glencore on Friday offered to buy the Rio Tinto unit for $2.5 billion.
"If Rio Tinto determines that the Glencore Proposal is a superior proposal, Yancoal Australia will have a right to match or better that proposal," the government controlled Chinese company added.
Coal & Allied includes Rio's giant coal operation in Australia's Hunter Valley, which the company has been attempting to unload for years, and its Mount Thorley Warkworth mines.
Write to Saurabh Chaturvedi at email@example.com
(END) Dow Jones Newswires
June 12, 2017 07:35 ET (11:35 GMT)