U&D waives acquisition conditions

THE Endocoal merger with U&D Mining looks likely to proceed after U&D waived the condition that certain Chinese regulatory approvals must first be given.

Staff Reporter

Approval from the National Development and Reform Commission, the Ministry of Commerce and the State Administration of Foreign Exchange are no longer essential for the deal to proceed.

Earlier this week, U&D received approval from the Chinese Assets Supervision and Administration Commission to proceed with its proposed $71 million acquisition of Queensland coal explorer Endocoal via a scheme of arrangement.

However, completion of the scheme remains subject to approval from the Federal Court of Australia.

The change of leadership in China was blamed for a delay in the approval of the merger.

The scheme of arrangement was approved by Endocoal shareholders on February 28.