LONDON-Rio Tinto PLC rebuffed a $2.5 billion offer by Glencore PLC for its Australian coal assets and recommended that shareholders approve a previous bid by a Chinese company.
Traders had previously told the Financial Times that Glencore's counter bid placed Rio in a hard position, with its board having to consider the merits of a higher offer against one that had regulatory approval in China.
Despite that, Rio chief executive Jean-Sébastien Jacques said in a statement last night, that the Yancoal Australia offere was the "best value" and greater "transaction certainty" for its shareholders.
The world's second-largest miner said in January it was selling Coal & Allied to Yancoal Australia - majority- controlled by China's Yanzhou Coal - for United States dollars 2.45 billion. Thermal coal prices have softened this year, and analysts expect demand to remain subdued as countries switch to cleaner burning fuels.
Pakistan Wins Its Maiden ICC Champions Trophy Title
Kohli said: "I congratulated them in the post-match presentation and I would do the same here because they deserved to win". Players like Hasan Ali, Fakhar Zaman were playing their first tournament and showed us that what they are capable of.
The mining giant says its board had engaged in discussion with both parties and taken the decision after considering several factors, including price and value; the risk that regulatory approvals will not be granted or significantly delayed; funding certainty; and deal execution timeline.
Rio Tinto said Yancoal had agreed to accelerate payments it had said it would defer when it made its original offer in January. Yancoal responded by strengthening its offer - choosing a single $2.45 billion payment, instead of paying a portion in annual installments. The Financial Times says "This raises the possibility that Yancoal could scrap its offer if the coal market suddenly tanks later this year".
Rio said Glencore had not secured clearance from various jurisdictions, including the Australian, Chinese, South Korean and Taiwanese authorities.
Rio Tinto shareholder meetings have been convened for June 27 in London and June 29 in Sydney to vote on the Yancoal sale, which is expected to be completed in the third quarter.
Comments