Tuesday, March 6, 2012

Noble says to get $555m in Gloucester merger

Commodity trader Noble Group will vote all its shares in Australia’s Gloucester Coal in favour of a merger with Yancoal Australia and will get A$412 million ($555 million) under the deal terms.

On completion of the merger, Yancoal is expected to be the largest independent listed Australian coal miner, Noble, which owns nearly two-thirds of Gloucester, said today.

China’s Yanzhou Coal Mining Company, Yancoal’s majority owner, has a clearly stated aim of growing its Australian mining business.

Yanzhou bought Australian miner Felix Resources in 2009 for A$3.3 billion and was required to float at least 30% of the business by 2012.

Noble Group will own 13.2% of Yancoal, and William Randall, Noble director and Head of Hard Commodities, will join the Yancoal board of directors.

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