Rio Tinto, Mitsubishi Corp to Acquire C&A in Australia

Rio Tinto and Japanese major trading firm, Mitsubishi Corporation announced on Monday conditional and incomplete joint takeover proposal to acquire all of remaining shares of Australian coal producer, Coal & Allied Industries. Rio Tinto and Mitsubishi Corporation’s wholly owned subsidiary, Mitsubishi Development, which have more than 85% shares of Coal & Allied Industries, purchase remaining 14.09% share for 1.488 billion Australian dollars. They control Coal & Allied to improve the flexibility in management and operations.

Rio Tinto and Mitsubishi Corporation offered total A$ 123.20 per share of Coal & Allied Industries, which represents 35.4% higher than closing price on August 5. Rio Tinto currently controls 75.71% shares of Coal & Allied Industries with 10.20% share by Mitsubishi Development. The deal is subject to regulatory approval and approval of minority shareholders of Coal & Allied Industries and other conditions. After the acquisition, Rio Tinto would control 80% of Coal & Allied Industries with 20% share by Mitsubishi Development.

Coal & Allied Industries produced 25.25 million tonnes of semisoft coking coal and thermal coal in 2010 at coal operations in Hunter Valley region, New South Wales of Australia. The firm cooperates with Nippon Steel and Mitsubishi Corporation in Warkworth mine and with Japanese major trading firm, Mitsui & Co. in Bengalla mine. The acquisition could have no impact on the joint ventures.