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Thursday, June 29, 2017
Yancoal should be cautious in Australian coal mine acquisition
ANBOUND

Yancoal's acquisition of the Australian C & A coal mine company is facing some changes; its competitor bidder Glencore has increase the offer to 2.68 billion US dollars, and promised to complete the payment after the completion of a one-time payment. Yancoal was forced to raise its bid to $ 2.69 billion, comapres to its initially offer 2.45 billion US dollars this is an increase of 240 million US dollars. Anbound believes that the global economy is still in the recovery period, and the global coal market is relatively sluggish, Chinese domestic coal consumption growth may slow down, and its domestic energy policy will be biased to reduce the use of coal, which would cause risks in the acquisition of expensive coal assets. Yancoal may fall into a high-priced acquisition "trap", and it needs to learn from the Chinese enterprise’s acquisition of mines in Australia.

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