Glencore Increases Fully Funded Offer for Coal & Allied

Glencore has submitted an improved irrevocable binding offer (“Glencore Offer”) to acquire Rio Tinto’s 100% interest in Coal & Allied Industries Limited (“C&A”) for US$2.675 billion cash plus a coal price linked royalty. All cash is payable in full immediately upon completion.
As quoted in the press release:

Improved Offer
Glencore’s Offer has been designed to address the points raised in Rio Tinto’s announcement dated 20 June 2017 as follows.

• Value: Glencore’s Offer is at least US$225 million greater than Yancoal’s proposal.

• Payment timing: The full US$2.675 billion cash consideration is payable in full on completion (no deferred payments).

• Regulatory Risk:

  • The Glencore Offer remains conditional only on approval from China, Korea, Taiwan and Australia. Japanese regulatory approval to acquire C&A has already been obtained.

  • Glencore believes that there is no legal basis to consider that such approvals will not be obtained.

  • Demonstrating our confidence in securing all approvals, Glencore’s Offer is supported by a US$225 million deposit which will be forfeited if the transaction does not complete as a result of a failure to obtain a regulatory approval. Refer Appendix for further details on regulatory approvals.

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