Rio Tinto shareholders approve Yancoal's $2.69bn bid for its Australian coal assets

Courtney Goldsmith
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Rio said Yancoal was its preferred buyer (Source: Getty)

Shareholders in mining giant Rio Tinto have voted to approve a $2.69bn (£2.07bn) bid from China's Yancoal for its Coal & Allied Industries unit.

This week's vote over Rio's Australian coal assets comes after a bidding war between Australia-listed Yancoal and miner Glencore.

After considering offers from both parties, Rio recommended shareholders vote in favour of Yancoal's bid.

The sale was approved by 97 per cent of shareholders, Rio said today.

Yancoal's second offer included a total consideration of $2.69bn as well as $240m in royalty payments and an increased break fee of $225m. The firm had also already received all of the necessary regulatory approvals, meaning the deal could be complete during the third quarter of 2017.

Glencore had sweetened its original offer to nearly $2.68bn in addition to a coal price-linked royalty. However, a deal with Glencore would likely not be completed until the first half of 2018 at the earliest, Rio said.

Already the world's largest exporter of sea-traded thermal coal, Glencore planned to blend Rio's Australian coal assets with its existing operations in the area.

Shares in Rio Tinto rose 2.92 per cent to 3,247.5p in morning trading.

Read more: John Varley has resigned from Rio Tinto's board after fraud charges

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