South32
(ASX:S32) has dropped its plans to buy a metallurgical coal mine in NSW for $US200 million.
In November last year, South32 agreed to buy the Metropolitan Colliery from US coal giant, the Peabody Energy Corporation, and a 16.67% stake in the Port Kembla coal terminal at Wollongong.
However, the Australian Competition and Consumer Commission (ACCC) said in February that, if this transaction went ahead, it could substantially lessen competition for the supply of coal to Australian steelmakers.
The diversified miner says it withdrew from this deal as it is not prepared to make significant concessions in favour of Australian steelmakers to mitigate the ACCC's competition concerns.
This morning, South32 shares opened steady at $2.83.
