Rio Tinto
(ASX:RIO) has signed a deal sell its Australian subsidiary Coal & Allied Industries Ltd to Chinese government-controlled Yancoal Australia Ltd
(ASX:YAL).
Rio Tinto sold its Australian subsidiary for $2.45 billion in cash and, once the sale is completed, it will be entitled to potential royalties.
The mining company says this transaction is subject to a number of conditions being satisfied – such as approvals from the Australian government, NSW state government and Chinese regulatory agencies.
The company is expecting this deal to complete in the second half of 2017.
Rio Tinto posted a net profit of $2.3 billion at 30 June 2016.
