China’s Yankuang Energy said on Thursday it had walked away from a potential deal to buy the remaining shares in its majority-owned unit, Yancoal Australia, due to recent market conditions.
In June, the Chinese energy firm said it was open to negotiations with the Australian coal firm, in which it holds a 62.26% stake, after its $1.8 billion offer was rejected.
Yancoal Australia in a separate statement confirmed that the deal was terminated.
Yankuang’s offer was based on Yancoal’s historic trading price, which surged in the past months in tandem with global coal prices.
The major shareholder had offered $3.60 per share in convertible bonds for the remaining 498.2 million shares not held in Yancoal.
London-listed mining giant Glencore had also sold its minority stake in the coal producer for A$442 million ($298 million) in July, Reuters had reported.
($1 = A$1.48)
(By Navya Mittal; Editing by Maju Samuel)