Business

Published: Monday October 26, 2009 MYT 2:18:00 PM

Aussie coal miner Mon welcomes OK of US$3.2bil China takeover


SYDNEY: Shares in Australian coal miner Felix Resources Ltd. jumped more than 4 percent Monday after the government approved a takeover by state-owned Yanzhou Coal, in what would be China's biggest investment yet in the Australian minerals sector.

Assistant Treasurer Sen. Nick Sherry announced after the market closed on Friday that the Yanzhou Coal Mining's bid to buy Felix - valued at Australian dollars 3.5 billion ($3.2 billion) - could go ahead as long as certain agreed conditions were met.

Yanzhou welcomed the decision and said the plan still needs Chinese regulatory and shareholder approval.

In a statement to the Australian Securities Exchange on Monday, Felix managing director Brian Flannery also welcomed the government approval, and said "Yanzhou's commitment to Felix and the Australian economy is widely acknowledged and appreciated by Felix."

Felix shares rose more than 4 percent from Friday's close to AU$17.43 on Monday.

Yanzhou's bid for Felix is the latest bid by a Chinese state-owned company to buy a chunk of Australia's huge supply of raw materials and thereby another piece of the production chain for products such as steel that are in high demand in fast-growing China. - AP


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