Glencore outbids Yancoal with US$3.5b offer for Hunter Valley coal mines
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.