Yanzhou to resubmit Felix takeover bid a second time
Saturday, 07 Nov 2009
Felix Resources Limited, which agreed to an AUD 3.5 billion takeover by Yanzhou Coal Mining Co, said Australia hasn't made a decision on the bid and the Chinese company is resubmitting its application.
Felix said that lodging the proposal with Australia's Foreign Investment Review Board a third time isn't expected to delay the transaction. Felix said on September 30th 2009 that it expects the takeover to be completed in December.
Yanzhou is seeking approval for the acquisition amid increased scrutiny from Australian lawmakers of resource purchases by China as the world's biggest consumer of metals and second biggest energy user accelerates takeovers. Yanzhou, the nation's fourth biggest producer of the fuel, filed its application to the board for a second time on September 11th 2009.
It may be noted that Australia halted an AUD 2.6 billion bid by China Minmetals Corporation for OZ Minerals Limited in March on national security grounds. The review board also blocked China Non Ferrous Metal Mining (Group) Co from buying a majority stake in rare earths producer Lynas Corporation on September 24th 2009. In June, Rio Tinto Group rebuffed a USD 19.5 billion investment from Aluminum Corporation of China.
