Mitsubishi‘s subsidiary Mitsubishi Development and Rio Tinto have proposed to acquire all the remaining shares in Coal & Allied Industries for A$1.49bn ($1.55bn).

Coal & Allied’s largest institutional shareholder Perpetual has supported the sale, which is still subject to regulatory approvals.

Mitsubishi Development currently holds 10.20% shares of Coal & Allied shares, whereas Rio Tinto holds 75.71% shares through a wholly owned subsidiary.

With the acquisition of Coal & Allied, Rio Tinto and Mitsubishi are expected to have full control of three coal mines in the Hunter Valley, Australia.