UK's Vallar is eyeing the possible acquisition of $1bn-worth of coal assets in North America and Australia to strengthen its aspirations of joining the FTSE 100.
The acquisitions are expected to be initiated after Vallar is transformed into an Indonesian coal group later this month.
Vallar is set to be renamed Bumi by acquiring stakes in Bumi Resources and Berau of Indonesia for $3bn in cash and shares, according to the Financial Times.
Vallar will pay $739m in cash and $833m in shares for 75% of Berau Coal and Energy, controlled by the Roeslani family, and will pay $1.43bn for 25% of Bumi Resources, controlled by the Bakrie family.
In 2010, Bumi and Berau produced a total of 78 million tons of coal, which Vallar is expecting to increase to 140 million tons by 2013.