Rio Tinto refused on Monday the second offer from its mining competitor Glencore for its Australian coal assets and chose Yancoal Australia's improved bid instead. Last week, Switzerland-based Glencore said it made an all-cash bid of $2.68 billion for Coal & Allied Industries as Rio turned down the first offer.
Rio Tinto recommended shareholders vote for revised offer by Chinese Yancoal. As the London-based Rio explained, Yancoal's sweetened offer of $2.69 billion has "greater transaction certainty" and is likely to be completed through the third quarter "whereas any transaction with Glencore is unlikely to complete until the first half of 2018 at the earliest."
Rio Tinto's shares rose 0.93% at 1:46 pm CET. At the same time, Glencore increased 0.82%.
