South32 Limited Metropolitan Colliery acquisition will not proceed (5529C)
18 April 2017 - 4:00PM
UK Regulatory
TIDMS32
RNS Number : 5529C
South32 Limited
18 April 2017
18 April 2017
ACQUISITION OF THE METROPOLITAN COLLIERY WILL NOT PROCEED
South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32)
announces that the proposed acquisition of the Metropolitan
Colliery and associated 16.67% interest in the Port Kembla Coal
Terminal from an Australian subsidiary of Peabody Energy
Corporation will not proceed.
On 23 February 2017, the ACCC issued a Statement of Issues,
concerned that the proposed acquisition may substantially lessen
competition in the supply of metallurgical coal to Australian
steelmakers.
South32 has always maintained that metallurgical coal is a
globally traded commodity. Given this, South32 is not prepared to
make significant concessions in favour of Australian steelmakers
that would likely be required to mitigate the competition concerns.
To do so would be contrary to the global market in which
metallurgical coal producers compete and would adversely affect the
value proposition of the acquisition.
South32 Chief Executive Officer Graham Kerr said: "Our approach
to acquisitions is always opportunistic and seen through the lens
of creating value for our shareholders.
"To proceed with the acquisition, in light of the anticipated
concessions, would have compromised the merits of the transaction
and this is not something we are prepared to do."
About South32
South32 is a globally diversified mining and metals company with
high quality operations in Australia, Southern Africa and South
America. Our purpose is to make a difference by developing natural
resources, improving people's lives now and for generations to
come. We are trusted by our owners and partners to realise the
potential of their resources. We have a simple strategy to maximise
the potential of our assets and shareholder returns by optimising
our existing operations, unlocking their potential and identifying
new opportunities to compete for capital.
Further information
INVESTOR RELATIONS
Alex Volante Rob Ward
T +61 8 9324 9029 T +61 8 9324 9340
M +61 403 328 M +61 431 596
408 831
E Alex.Volante@south32.net E Robert.Ward@south32.net
MEDIA RELATIONS
Diana Wearing Hayley Cardy
Smith T +61 8 9324 9008
T +61 8 9324 M +61 409 448
9198 288
M +61 436 482 E Hayley.Cardy@south32.net
290
E Diana.Smith@south32.net
Further information on South32 can be found at
www.south32.net.
JSE Sponsor: UBS South Africa (Pty) Ltd
18 April 2017
This information is provided by RNS
The company news service from the London Stock Exchange
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