China Wealth Fund Joins Fray for $2 Billion Rio Portfolio (Bloomberg News – February 8, 2018)

The Chinese sovereign wealth fund is considering joining the bidding for Rio Tinto Group’s last remaining coal mines, which may fetch more than $2 billion, people familiar with the matter said.

China Investment Corp. is discussing making a joint offer with Australian private equity firm EMR Capital Advisors Pty, which was among shortlisted bidders for the Hail Creek and Kestrel mines, according to the people.

Suitors are scheduled to make site visits to the operations in Australia’s Queensland state this month ahead of the final bid deadline in March, the people said, asking not to be identified because the information is private.

The EMR consortium would compete with Whitehaven Coal Ltd. and the Australian unit of China’s Yanzhou Coal Mining Co., which are separately weighing binding offers for the Rio assets, the people said.

South32 Ltd. and an investor group led by Apollo Global Management LLC were also preparing to enter the second round of the sale process, people familiar with the matter said in December.

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