backed Yancoal over Glencore for coal sale
SYDNEY/LONDON, June 26 (Reuters) Rio Tinto on Monday uk canada goose confirmed Yancoal Australia as the preferred buyer for its Australian Coal Allied unit after the China backed company added an eleventh canada goose uk shop hour sweetener to top a rival bid from Glencore.
Rio mines in Australia Hunter Valley region canada goose clearance sale are attractive Canada Goose Jackets to both Glencore and China because the quality of their coal means it is likely to continue to be burnt even as concerns about emissions deter generators from using poorer quality coal, which is canada goose clearance the most polluting of all.
Yancoal increased its offer to $2.69 billion from $2.45 billion, adding $240 million in unconditional guaranteed royalty payments to a cash offer of $2.45 billion.
revised offer from Yancoal of $2.69 billion offers compelling Canada Goose online value to our shareholders, Rio Tinto Chief Executive Jean Sebastien Jacques said in a Canada Goose Parka statement.
Glencore on Friday had raised its offer to $2.675 billion in cash, looking to beat Yancoal earlier offer of $2.45 billion.
Glencore said its bid would lapse if Rio Tinto did not declare it to be superior by June 26.
On Monday, it declined comment on Rio Tinto decision to stick with Yancoal.
Rio Tinto said Yancoal canada goose coats on sale offered a faster and more certain timetable, with the deal likely to be wrapped Canada Goose sale up during the third cheap Canada Goose quarter cagooseclearance of 2017, cheap canada goose uk compared with the first half of 2018 at the canada goose store earliest for the Glencore deal.
Yancoal also increased its termination fee, in Canada Goose Outlet the event a deal is not completed, to $225 million from $100 million.
continues to provide Rio Tinto with the certainty of approvals and funding required to facilitate the efficient and timely sale of Canada Goose Coats On Sale the Coal Allied assets, Yancoal Chairman Xiyong Li said canada goose uk outlet in a statement.
Yancoal, canadian goose jacket though based in Australia, is 78 percent owned by China Yanzhou canada goose uk black friday Coal Mining Company.
The sale includes a major stake in the Port Waratah coal loading facility in canada goose black friday sale Newcastle port, from where most of Australia thermal coal departs for overseas markets.
Both Glencore and buy canada goose jacket Yancoal want to buy Rio Tinto mines to operate alongside existing operations, looking to sell high quality thermal coal to power generators in Japan, Taiwan and South Korea that are under pressure to become more efficient and to lower emissions.
In raising its offer last week, Glencore said it would sell assets to ensure its debt buy canada goose jacket cheap level remained modest.
Analyst Edward canada goose factory sale Sterck of BMO canada goose Capital Markets said if Glencore higher Cheap Canada Goose Parka Canada Goose Online bid had been accepted, it could reduce the company flexibility to pursue its goal canada goose coats of expanding its agriculture business.
Rio Tinto uk canada goose outlet will now hold shareholder meetings on Tuesday in London and on Thursday in Sydney to allow shareholders to vote on the deal.
Glencore share price rose 0.5 percent by 1325 GMT, while Rio rose 1 percent. (Reporting by James Regan in SYDNEY and Barbara Lewis in LONDON; Editing by Tom Hogue and Adrian Croft).