Insight
Glencore outbids Yancoal with US$3.5b offer for Hunter Valley coal mines
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Glencore announced on June 9, 2017 that it had submitted a proposal for the acquisition of Rio Tinto's interest in NSW thermal and semi-soft coking coal producing mines - Hunter Valley Operations (HVO), Mt Thorley and Warkworth. Glencore has also agreed to purchase Mitsubishi's stakes in HVO and Warkworth. Glencore's offer for the Rio Tinto and Mitsubishi stakes in the assets is US$3.5b, which exceeds Yancoal's combined offer of US$3.4b for the same assets (assuming it accepts Mitsubishi's US$230m offer for its stake in Warkworth). However, under the terms of the January 2017 agreement between Yancoal and Rio Tinto, Yancoal has the right to make a counter bid to Rio Tinto and we understand that Glencore could then also revise its offer.
Table of contents
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Deal Summary
- Key facts
- Deal Analysis
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Valuation summary and bid comparison
- Deal implied long-term (adjusted) benchmark thermal coal prices vs. Newcastle export thermal coal spot price (6,000 nar)
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Strategic rationale
- Map of Glencore and Rio Tinto's Hunter Valley coal operations and projects
Tables and charts
This report includes the following images and tables:
- Valuation summary
- Glencore outbids Yancoal with US$3.5b offer for Hunter Valley coal mines: Image 1
- Glencore outbids Yancoal with US$3.5b offer for Hunter Valley coal mines: Image 2
- Glencore outbids Yancoal with US$3.5b offer for Hunter Valley coal mines: Table 1
- Glencore outbids Yancoal with US$3.5b offer for Hunter Valley coal mines: Image 3
- Glencore outbids Yancoal with US$3.5b offer for Hunter Valley coal mines: Image 4
- Glencore outbids Yancoal with US$3.5b offer for Hunter Valley coal mines: Image 5
- Glencore outbids Yancoal with US$3.5b offer for Hunter Valley coal mines: Image 6
- Glencore outbids Yancoal with US$3.5b offer for Hunter Valley coal mines: Image 7
- Glencore outbids Yancoal with US$3.5b offer for Hunter Valley coal mines: Image 8
- Economic assumptions
What's included
This report contains:
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