Whitehaven Coal reported that all conditions precedent has 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 is scheduled to be completed on April 2, 2024. On completion, 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.
Whitehaven Managing Director and CEO Paul Flynn said that Whitehaven and BMA are well prepared for a smooth transition. “This is an important milestone for Whitehaven and our people, including the transferring employees we will be welcoming into our workforce from Daunia and Blackwater,” Flynn said.
Flynn thanked all the teams at Whitehaven, BMA, BHP, and Mitsubishi who have been working hard preparing for the transition. “We are well placed to take ownership of the new assets and to seamlessly maintain supply for our steel-producing customers across Asia,” Flynn said. “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.”
