Canadian metallurgical coal producer Grande Cache Coal (TSX:GCE) announced March 1 the completion of a plan of arrangement with 1629835 Alberta Ltd., a company indirectly jointly owned by China’s Winsway Coking Coal Holdings and Japan’s Marubeni.
Under the arrangement, the purchaser acquired all of the issued and outstanding common shares of Grande Cache at a cash price of C$10 per share, for a total cash consideration of around C$1bn.
Grande Cache Coal is an Alberta-based metallurgical coal mining company that holds coal leases covering over 29,000 hectares containing an estimated 346 million tonnes of coal resources in the Smoky River Coalfield located in west-central Alberta.
The takeover of Grande Cache by Winsway and Marubeni is part of a trend sweeping the western Canada coalfields as major international players look to secure future supplies of met coal that can be shipped into the rapidly-growing Pacific Rim market. Last year, for example, Alabama coal producer Walter Energy took over Western Coal, which has mining operations in the region. Also last year, in separate transactions, Xstrata acquired First Coal, which is developing a new coal mine using an innovative highwall miner method, and the nearby Lossan met coal reserves.