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Yancoal offers to buy Mitsubishi stakes in Rio Tinto coal mines for $940M

Published 06/13/2017, 08:14 AM
Updated 06/13/2017, 08:14 AM
© Reuters.  Yancoal offers to buy Mitsubishi stakes in Rio Tinto coal mines for $940M
  • Yancoal (YZC, OTC:YACAF) signals it may be willing to raise its bid for Rio Tinto's (NYSE:RIO) Hunter Valley coal assets after offering $940M to buy Mitsubishi's (OTCPK:MSBHY) stakes in the mines.
  • The offer follows Glencore (LON:GLEN)'s (OTCPK:GLCNF, OTCPK:GLNCY) announcement last Friday that it also had reached a deal with Mitsubishi to buy the same stakes in the same coal mines, but Yancoal's offer was slightly higher.
  • Mitsubishi does not need to choose between the two offers and has agreed to both given the divestment is a "tag-along" deal in relation to the looming sale of Rio's Coal & Allied assets, and the company that is successful in acquiring Rio's coal assets also will get the Mitsubishi assets.
  • Now read: Copper Could Be Heading For Support


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