Coal India, state run miner has decided to acquire two Australian companies for over $4 billion. With this initiative, the company aims to import 28 million tonnes high quality thermal coal a year. The company has sent the proposal to pick majority stakes for $2 billion each in the two companies, with annual output of 12 million tonnes and 16 million tonnes, respectively.
This acquisition process is likely to take at least three months because, it will conduct a due diligence through its merchant bankers on the assets to make sure the return on investment is in stipulation with the government norms. Recently, CIL received 32 proposals when it floated an expression of interest for acquiring assets overseas, from countries including Indonesia, Australia, USA, Mozambique, Chile and Columbia.
