Bid Co to acquire Grand Cache Coal

1 November 2011 (Last Updated November 1st, 2011 18:30)

Japanese firm Marubeni and China's Winsway Coking Coal's joint venture Alberta Corporation (Bid Co) has entered into a definitive agreement to acquire all the shares of Canadian firm Grande Cache Coal (GCC).

Japanese firm Marubeni and China's Winsway Coking Coal's joint venture Alberta Corporation (Bid Co) has entered into a definitive agreement to acquire all the shares of Canadian firm Grande Cache Coal (GCC).

Under the terms of the agreement, GCC shareholders will receive cash consideration of C$10.0 (US$10) per common share, resulting in total transaction value of about C$983m (US$986m).

GCC holds coal leases covering over 220km² in the Smoky River Coalfield in west-central Alberta, Canada, with estimated coal resources of 346 million tons.

The acquisition will allow Marubeni to increase its operations in the Canadian coal sector.

The transaction is expected to be completed by end of 2011 Japanese fiscal year, and is subject to court and regulatory approvals, Winsway's shareholders approval and GCC shareholders approval.