Yancoal said on Sunday that it has secured Chinese regulatory approval for the planned US$2.45 billion purchase of Rio Tinto’s Australian unit Coal & Allied Industries.
The Chinese firm said it won clearance from China’s National Development and Reform Commission and the anti-monopoly bureau of the Ministry of Commerce for the Australian deal.
In a stock-exchange filing, the government-controlled company acknowledged Glencore’s counterbid for the Australian assets, Reuters reports.
In January, Rio said it was selling its interest in Coal & Allied Industries to Yancoal’s Australian subsidiary for US$2.45 billion.
Glencore on Friday made a counterbid for Coal & Allied offering US$2.55 billion cash.
The terms of the Yancoal agreement allow Rio to engage in negotiations with another party if it made a better offer.
Glencore’s proposal is US$100 million higher and fully funded, but Rio Tinto has to give Yancoal the chance to make a counter offer, opening the way for a bidding war.
“If Rio Tinto determines that the Glencore Proposal is a superior proposal, Yancoal Australia will have a right to match or better that proposal,” the Chinese firm said in the filing on Sunday.
“Further announcement will be made by the company in accordance with the listing rules if it receives notification from Rio Tinto in relation to whether the Glencore proposal constitutes a superior proposal.”
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