Glencore International is planning to acquire a controlling interest in Optimum Coal Holdings of South Africa for a total value of £750m ($1.2bn).

According to the terms of the offer, Glencore has offered R34 ($4.78) for each share of Optimum Coal, representing a 35.9% premium to the 30-day volume weighted average Optimum share price.

With this acquisition Glencore will have access to Optimum Coal’s Optimum Collieries and Koornfontein mines in the Mpumalanga coalfield, along will 8Mt of coal export entitlements from Richards Bay coal terminal.

The transaction will also give Glencore access to Optimum’s recently acquired TNC and Remhoogte projects, and will complement Glencore’s existing coal operations in South Africa with Shanduka Coal.