Deals

Yancoal Plans $2.5 Billion Equity Raising for Rio Coal Mines

  • Shareholder Noble Group may challenge deal on dilution concern
  • Glencore will also contribute $300 million as part of deal

A Caterpillar Inc. 834B dozer moves coal at the Savage Industries Co. processing facility in Price, Utah, on Friday, May 27, 2016. Power-plant demand for gas has been breaking seasonal records amid low prices and a record shutdown of coal plants last year to meet stricter environmental regulations, government data show.

Photographer: George Frey/Bloomberg
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China-backed Yancoal Australia Ltd. will raise $2.5 billion in equity to fund the purchase of Rio Tinto Group’s Australian coal assets, with its parent Yanzhou Coal Mining Co. tipping in $1 billion.