According to The Australian Financial Review, Glencore has lobbed a $US2.55 billion ($3.38 billion) bid for Rio Tinto's Hunter Valley thermal coal assets in a move that seeks to derail the sale of the business to Chinese dominated miner Yancoal.
The Swiss miner announced the rival bid early on Saturday morning, arguing its bid was not only higher than Yancoal's, but was also more likely to be completed given Yancoal is yet to arrange funding.
The move seizes on market concerns about Yancoal's ability to raise the $US2 billion to $US3 billion needed to settle the deal, and reiterates Glencore's long-held desire to merge its Hunter Valley coal assets with Rio's.
"The Glencore proposal will be funded from existing cash resources and committed facilities and is subject only to regulatory conditions, said Glencore in a statement.
Glencore said it had agreed with Rio's partner in the assets, Mitsubishi, to buy its stake for $US920 million, in a tag-along deal that is contingent on Glencore also acquiring Rio's assets.
If you want to read this article in Japanese, please see the following link:
Subscribe to our English Newsletter