Rio Tinto, Mitsubishi Bid for All of Coal & Allied

MELBOURNE, Australia ( TheStreet) -- Rio Tinto ( RIO) and Japan's Mitsubishi offered Monday to buy the shares they don't already own in Coal & Allied Industries, Australia's sixth-largest coal miner, for 122 Australian dollars ($126.50) a share.

The offer values Coal & Allied at about A$10.6 billion ($11 billion).

Rio Tinto is Coal & Allied's largest shareholder. It currently holds 75.71% of Coal & Allied shares. Mitsubishi holds 10.2%.

The bid for Coal & Allied follows a bid earlier this month by Peabody Energy ( BTU)and ArcelorMittal ( MT) to acquire Australia's Macarthur Coal for A$4.7 billion.

The board of Macarthur Coal, the world's largest producer of pulverized coal product that is used to make steel, rejected the bid, calling it "opportunistic."

-- Written by Joseph Woelfel

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