News: Coal and Allied offered bid from Rio

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Coal & Allied Industries Limited (ASX:CNA) may soon be owned solely by Rio Tinto (ASX:RIO) and Mitsubishi Corp.



The two companies will pay $122 per share to buy out minorities in the coal miner in an indicative deal that values the company at $10.6 billion.



Rio and Mitsubishi currently hold 75.7 per cent and 10.2 per cent respectively of Coal & Allied.



Their proposed stake would be 80 per cent and 20 per cent after the offer.



Perpetual is the only other major shareholder, with 6.3 per cent of the stock.



Coal & Allied Industries Limited (ASX:CNA) reported a profit of $227.4 million in the six months to June.