Australian coal producer Gloucester Coal Ltd is to merge with Whitehaven Coal Ltd to create a company with a combined market value of about A$900M ($581M).
Under the terms of the deal, Whitehaven shareholders will get one Gloucester share for every 2.45 Whitehaven shares.
Based on 2008 figures, the merged group will produce about 4.5 mtpa of coal from seven mines, and will have reserves of about 190 mt and resources of about 922 mt.
Whitehaven operates the Tarrawonga, Werris Creek, Rocglen and Sunnyside thermal coal mines in New South Wales state. It also owns an 11% stake in the Newcastle Coal Infrastructure Group, which is building a new export terminal at the harbour.
