Yanzhou Signs $2.7B Deal For Australian Coal Co.

Law360, New York (December 23, 2011, 5:16 PM EST) -- Major Chinese coal provider Yanzhou Coal Mining Co. Ltd. will shell out $2.7 billion to merge its Australian mining arm with Australia's own Gloucester Coal Ltd., according to the terms of the deal announced Friday.

The Chinese company will pay Gloucester shareholders $3.20 per share, according to the merger agreement. Yanzhou's Australian arm, Yancoal Australia Ltd., will also absorb about $700 million of Gloucester's outstanding debt, the Australian company said.

The cash deal will give Yanzhou a 77 percent stake in the merged company, with Glouceseter...
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