South China Morning Post
Mainland group seeks to acquire full control of Yancoal amid weak prices for coal but the move is expected to face stiff opposition.
Yanzhou Coal Mining has proposed taking its Australian unit private for about A$180 million (HK$1.26 billion), a deal that would give it more control over a key coal asset but which is expected to face stiff opposition from regulators.
The proposal for Yanzhou to buy the 22 per cent of Yancoal Australia it does not own appears to run counter to previous requirements it be run as an Australian company. It also comes at a time when sensitivity over Chinese firms buying foreign assets is high.
Yanzhou, China’s third-biggest coal firm by market value, is talking to the Foreign Investment Review Board and is making the case that the deal is in Australia’s national interest as many resource assets are now on the block, a source said.