China’s Yangzhou Coal Mining has agreed to buy Felix Resources for just under US$3 billion, making it China’s largest investment in Australia’s natural resources sector.
Yangzhou Coal’s proposed takeover is subject to approval by Australian regulators including the Foreign Investment Review Board, which vets all foreign sovereign investments.
Felix, which has mines in New South Wales and Queenland, urged its shareholders to accept the deal. A spate of Chinese natural resources deals in Australia are awaiting Canberra’s approval.
Yangzhou Coal’s offer will dwarf China Minmetals Corp’s US$1.4 billion acquisition of OZ Mineral’s mining assets earlier this year.
Mainland China mergers and acquisitions in Australia have reached US$9 billion so far this year. Australia is the mainland’s most targeted nation, accounting for 29 percent of outbound deals.
The deal will bring much-needed growth to Yanzhou Coal, whose sales at 37.5 million tones last year have been stagnant in recent years.
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