Coal : Rio Tinto prefers to sell its mines to the Chinese Yancoal at Glencore

The giant anglo-australian Rio Tinto has reiterated on Monday his choice to sell its coal-mining operations of australian-chinese Yancoal, after an improved offer from the latter aimed to counter the ambitions of the swiss Glencore. Rio Tinto has confirmed in a press release that he preferred the offer of Yancoal, which offers, according to him, more certainties, and has primarily been found Sunday to reach $ 2.69 billion (2.4 billion euros).

Arm of iron

Yancoal is engaged in a standoff with Glencore to buy back the mines belonging to Coal & Allied, and to be sold by Rio Tinto, the second largest group of global mining, which disengages the coal industry in Australia in a context of volatile market.

Rio Tinto had made the June 20 of his preference for the offer of Yancoal, before Glencore exceeds it last Friday, offering 2,675 billion. But the decision of Yancoal to offer a little more money, it seems, convinced Rio Tinto to maintain its preference provided that all of the regulatory barriers have already been removed for the chinese group.

A sales process launched since a long time

“The revised offer to 2.69 millions of dollars of Yancoal proposes a valuation compelling at the destination of our shareholders of our assets in the thermal coal”, – explained in the press release Jean-Sebastien Jacques, ceo of Rio Tinto.

“The sale process has been launched for a long time, and our believe that it is in the best interest of our shareholders to accept the strong proposal of Yancoal offers more certainties,” he added.

The shareholders of Rio Tinto, a group composed of two entities, will gather in general assembly, Tuesday, and Thursday to decide on the offer of Yancoal.

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