The acquisition forms Australia’s largest pure-play coal producer
King & Wood Mallesons (KWM) has advised Yancoal shareholder Yangzhou and its parent Yankuang on the $3.1bn acquisition of Coal & Allied from Rio Tinto.
With the acquisition, Yancoal becomes Australia’s largest pure-play coal producer. The deal adds interests in three operating, large-scale, long-life and low-cost coal mines in the Hunter Valley region of New South Wales, the firm said.
Yancoal was majority-owned by Yangzhuo before the acquisition. The deal, subject to approvals from shareholders of Rio Tinto and Yangzhou as well as regulators, is expected to close in the third quarter of the year.
KWM fielded a cross-border team in Australia and China to advise on the deal. The team was led by partners Han Jie and Tang Lizi from KWM China and partner David Friedlander, Esther Hao and Jingchuan Zhao in Australia. They were supported by senior associate Robert Kelly and solicitor Anthony Hong.
Australasian Lawyer earlier reported that Gilbert + Tobin acted for the independent board committee of Yancoal Australia. Herbert Smith Freehills advised Yancoal in the deal.