The Chinese approach to Gloucester Coal,
proposing a merger with Yancoal Australia, is driven by an interesting mix of
necessity and opportunity.
In 2009, Yancoal’s parent, the Chinese
state-owned enterprise Yanzhou Coal Mining, acquired Felix Resources and its
coal mines in NSW and Queensland for more than $3 billion, the biggest
acquisition of an Australian company by China at that time.
The problem for Yanzhou is that to obtain
Foreign Investment Review Board approval it committed to offering 30 per cent of
Yancoal to public investors before the end of 2012. With the clock ticking and
market conditions deteriorating the prospect of a forced selldown against a
deadline and into a potentially difficult market next year will have been the
focus of significant attention within Yanzhou
Business Spectator.
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