Rio settles for Yancoal deal

RIO Tinto has rebuffed a late offer from Glencore for its NSW coal operations and instead agreed to go ahead with its existing deal with China’s Yancoal. The mining giant says its board had discussions with both parties and considered several factors, including price and value; the risk that regulatory approvals will not be granted or significantly delayed; funding certainty; and deal execution timeline. Earlier in June, Glencore made a $ US2.55 billion ($ 3.36 billion) all- cash bid for Rio subsidiary Coal and Allied Industries, which includes, among others, majority stakes in the Hunter Valley Operations and Mount Thorley Warkworth mine.