Yancoal gets green light to acquire Coal & Allied

THE Australian Foreign Investment Review Board has no objections to Yancoal – which is majority owned by Chinese coal mining giant Yanzhou – buying Rio Tinto’s Coal & Allied coal mines in New South Wales for US$2.45 billion.
Yancoal gets green light to acquire Coal & Allied Yancoal gets green light to acquire Coal & Allied Yancoal gets green light to acquire Coal & Allied Yancoal gets green light to acquire Coal & Allied Yancoal gets green light to acquire Coal & Allied

Lou Caruana

Coal & Allied owns an interest in the Hunter Valley Operations mine and the Mount Thorley Warkworth  mines together with associated assets in the Hunter Valley.

Yancoal said in a statement that the deal was subject to compliance with existing governance conditions, which already applied to Yancoal’s assets and standard tax conditions applied to all FIRB approvals. 

Satisfaction of the FIRB conditions represented a critical milestone for Yancoal, CEO Reinhold Schmidt said.

“Today’s FIRB approval is a positive step forward for Yancoal, its shareholders and the Hunter Valley, demonstrating the Australian Government’s support for continued investment into the local resources sector,” he said.

The transaction remains subject to a number of further closing conditions, including Rio Tinto shareholder approval and Yanzhou Coal Mining Company shareholder approval.

The transaction is expected to complete in the third quarter of 2017.