The Supreme Court of Victoria has given the final approval for the proposed merger of Gloucester Coal and Yancoal Australia. The approval by the Court is the final step needed before the announcement is made on the ASX.

 

Under the proposed merger, first announced in December last year, Gloucester will take a 22 per cent stake in the merged company, with Yanzhou Coal, Yancoal’s Chinese parent company, will take the remaining 78 per cent.

 

On behalf of the Gloucester Board, Chairman, James MacKenzie, said “the Gloucester directors recognised from the outset the merits of combining the Gloucester and the Yancoal assets. We are therefore pleased to have completed our due diligence inquiries that enable us to proceed with a transaction that we can recommend to our shareholders.”

 

“This transaction provides Gloucester shareholders with the opportunity to participate in a globally significant coal company that is expected to be Australia’s largest listed pure-play producer.”