YANZHOU Coal is set to bid for Queensland coal miner, Felix Resources in the biggest potential deal between an Australian firm and a Chinese state-owned company since Chinalco's failed bid to double its stake in Rio Tinto.
Yanzhou Coal is expected to make a $3.5 billion takeover bid, which would price shares in the mining company at around $20 per share.
Gavin Wendt, the head of research at stockbroker Fat Prophets, says this shows that despite the country’s objections to the failed business dealings between Chinalco and Rio Tinto, it is still hungry for Australian resources.
However, the timing is difficult. Relations between China and Australia are strained over the detention of Rio Tinto iron ore negotiator, Stern Hu.
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