Glencore moves to trump Chinese rival for Rio's Aussie coal assets

Toronto

GLENCORE plc's Ivan Glasenberg is looking to trump China's Yanzhou Coal Mining Co with a rival bid for Rio Tinto Group's coal assets in Australia.

The company's chief executive officer submitted a proposal to buy Rio's Coal & Allied coal unit in New South Wales for US$2.55 billion, the Baar, Switzerland-based producer and trader said on Friday in a statement. If successful, the company would also seek to buy Mitsubishi Corp's stakes in two coal ventures for US$920 million in the same area.

The moves threaten to squeeze out a rival bid by China's Yanzhou's Yancoal Australia unit, which in January offered US$2.45 billion for Rio's Coal & Allied unit. That offer includes an initial US$1.95 billion cash payment and US$500 million in annual installments of US$100 million following completion.…