Inform

Glencore secures 49% stake in Hunter Valley Operations

Loading current market price

Get this report

Loading current market price

Get this report as part of a subscription

Enquire about subscriptions

Already have subscription? Sign In

Further information

Contact us

Submit your details to receive further information about this report.

  • An error has occurred while getting captcha image

Report summary

Glencore announced on 27 July that it had reached an agreement with Yancoal to purchase a 49% shareholding in Hunter Valley Operations (HVO), subject to completion of Yancoal's acquisition of Coal and Allied from Rio Tinto. Glencore has offered a cash consideration of US$1,139 million and a 27.9% share of US$240 million non-contingent royalties over a five year period (which we value at US$55.8 million). The deal represents fair value being done at a level close to our base case valuation. It is also at a slightly higher level than Yancoal's Coal & Allied deal with Rio Tinto and Mitsubishi Corporation that was struck at implied long-term benchmark prices of US$69 and U$116/tonne for thermal and hard coking coal respectively. We expect this deal to offer significant upside and synergies for both Yancoal and Glencore.

What's included

This report contains

  • Document

    Glencore secures 49 percent stake in Hunter Valley Operations.xls

    XLS 218.50 KB

  • Document

    Glencore secures 49% stake in Hunter Valley Operations

    PDF 1007.08 KB

  • Document

    Glencore secures 49% stake in Hunter Valley Operations

    ZIP 1.02 MB

Table of contents

  • Glencore secures 49% stake in Hunter Valley Operations

Tables and charts

This report includes 2 images and tables including:

Images

  • Glencore's high-grade thermal coal and SCC (export) production for Australia

Tables

  • Key facts

Questions about this report?

    • Europe:
      +44 131 243 4699
    • Americas:
      +1 713 470 1900
    • Asia Pacific:
      +61 2 8224 8898