Glencore increases offer for Rio Tinto’s C&A assets

In light of reports on Tuesday that diversified miner Rio Tinto urged its shareholders to vote in favour of the sale of its wholly-owned subsidiary Coal & Allied Industries (C&A) to Yancoal Australia, as opposed to electing the counter offer from Glencore, the latter has raised its offer to $2.67-billion, including a coal price-linked royalty. Earlier this month, Glencore offered to acquire the C&A assets for $2.55-billion, comprising an initial $2.05-billion in cash and $500-million in deferred cash payments payable as annual instalments of $100-million over five years. The offer also included the coal price-linked royalty.