Yancoal ups ante to buy Rio’ Tinto’s thermal coal assets

Company News

by Jessica Amir

Rio Tinto Limited (ASX:RIO) has reconfirmed its recommending shareholders vote in favour Yancoal Australia (ASX:YAL) buying its wholly-owned subsidiary Coal and Allied Industries (C&A).

It comes as Yancoal sweetened its purchase agreement to include US$500 million of deferred payments, payable on completion, which will take Yancoal’s total amount payable to US$2.45 billion.

Rio Tinto says Yancoal’s improved terms were superior to Glencore’s counter proposal, which lacked clearance from Australia’s FIRB and the ACCC.

Rio Tinto says Yancoal’s offer to purchase its thermal coal assets offers best value and greater transaction certainty for shareholders.

Shares in Rio Tinto Limited (ASX:RIO) last traded about half a per cent lower to $59.72
 

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