Mar. 9, 2012 (China Knowledge) - Australia's foreign investments watchdog yesterday granted approval to the merger of Australian miner Gloucester Coal and Yancoal Australia Ltd, a subsidiary of leading Chinese coal producer Yanzhou Coal Mining Co<600188
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The merged entity Yancoal must be listed on the Australian Securities Exchange by the end of this year and keep its headquarters in Australia, said Swan, adding that Yanzhou would have to reduce its stake in Yancoal to less than 70% by the end of 2013.
Under the merger, the Gloucester shareholders will receive a total A$639 million in cash and take a 22% stake in the merged firm.
The approval is a further step toward the creation of Australia's biggest listed coal company with resources of about 3.4 billion metric tons. The combined company is expected to produce 25 million metric tons of coal each year by 2016.