Only regulatory approvals are still required for the transaction, which is expected to close July 13.
"This is an exciting day for the company as the acquisition of Cambrian creates a larger, stronger and more diversified coal company,” WCC president John Hogg said.
“With the coal assets in Western Canada, West Virginia and South Wales [UK], the company now has positioned itself as a global mid-tier coal producer that has the built-in capacity to produce over 7 million tonnes of metallurgical and thermal coal per year."
The company first announced its plans in late May to buy Cambrian Mining for £67.5 million, or $C120 million ($US103.87 million), with Cambrian shareholders to receive 0.75 WCC ordinary shares for each Cambrian share owned.
The deal gives the newly combined company a more diversified portfolio. It also brings thermal coal into the mix for a Canadian producer historically known for its hard coking and low-volatility pulverised coal injection coal product.
The Canadian producer’s coal reserves are expected to jump by 39% and its resource base by 50%, while production levels would spike 100% to about 3.5Mt.
"This transaction is demonstrably beneficial to shareholders for both companies – it simplifies the corporate structure and provides a solid foundation for growth,” Western chairman John Byrne said at the time of the merger announcement.
“From the Western shareholders’ perspective, Western will acquire 100 per cent of low-cost metallurgical and thermal coal mines in West Virginia, 50.6 per cent of a thermal coal mine in the UK, 45 per cent of Xtract Energy and 100 per cent of AGD Mining.
“From the Cambrian shareholders' perspective, this transaction will remove the holding company discount, which we believe has affected the valuation of the company for many years, and shareholders will retain a significant interest in a larger and financially stronger group."
Once the transaction closes, John Brodie, John Byrne, Robert Chase, John Conlon, Charles Pitcher and Julian Treger will remain on Western’s board, as well as John Hogg, who will continue on as the company’s president.
