Whitehaven Coal reported that all conditions precedent have now been satisfied to complete its acquisition of the Daunia and Blackwater metallurgical coal mines and all the shares in South Blackwater Coal Pty Ltd from the BHP Mitsubishi Alliance (BMA). The acquisition will essentially double Whitehaven’s production profile, transforming it into a leading metallurgical coal producer.
The transaction was completed on April 2, 2024. Whitehaven will pay $2 billion to BMA, which is the balance of the upfront consideration, together with customary completion adjustments, to be funded by a $1.1 billion term facility and cash held on the balance sheet.
“This is a significant milestone for Whitehaven that transforms us into a leading metallurgical coal producer and will deliver benefits for all of our stakeholders,” said Paul Flynn, managing director and CEO, Whitehaven Coal. He thanked the teams at Whitehaven, BMA, BHP and Mitsubishi and the advisors who have worked hard to help Whitehaven complete the acquisition.
“We are well placed to execute a smooth transition and to integrate the Daunia and Blackwater mines into the Whitehaven portfolio,” Flynn said. “We are excited to welcome the teams at Daunia and Blackwater into our business and we look forward to working with the local community and other stakeholders who will remain an important part of our operations. We look forward to a long and prosperous future as a leading metallurgical coal producer while continuing to supply high-quality thermal coal to our customers in Asia to underpin energy security through the energy transition.”
