.
China’s Yanzhou Coal Mining has confirmed it will merge its unit Yancoal Australia with Gloucester Coal Limited (ASX:GCL). That’s according to the Dow Jones Newswires.
The merger will create one of Australia’s largest listed operating coal companies.
In a statement, China’s third-largest listed coal miner by output says it proposes to own 77 per cent of the merged company, with Gloucester shareholders owning the remaining 23 per cent.
For the 2011 financial year Gloucester Coal reported a net profit of $54.5 million.
