Rio bid for Coal & Allied clears FIRB hurdle

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Coal & Allied Industries said today an offer from Rio Tinto and partner Mitsubishi to buy outstanding shares they don't hold in the company has met approval conditions set by the Foreign Investment Review Board, or FIRB.

Rio and Mitsubishi are offering $125 a share, an increase of $3 on the indicative price offered early in August, to value Coal & Allied at $10.8 billion. Coal & Allied said it will lodge a draft for regulatory review with the Australian Securities & Investments Commission in the week starting today and aims to host a meeting of shareholders on November 28. Rio owns 75.7 per cent of Coal & Allied, and Mitsubishi 10.2 per cent.