Yancoal Australia (ASX:YAL) has announced as Rio Tinto (ASX:RIO) gave it the green light to buy its thermal assets, it will now become the largest pure-play coal producer in Australia.
The coal producer says Rio Tinto’s shareholders (97.2 per cent) voted in favor of Yancoal buying its Coal & Allied Industries business for US$2.69 billion.
Yancoal will now seek to complete the transaction as soon as possible and within the third quarter of 2017.
The firm says Rio’s support for the purchase signals the next stage of its strategic growth.
Meanwhile, Yancoal also says the transformational buy is a positive sign for continued investment into the local resource sector.
Shares in Yancoal Australia (ASX:YAL) traded about 6.9 per cent lower yesterday to $0.27.
