Yancoal-Gloucester deal receives court approval

BEIJING - Yanzhou Coal Mining Co said Thursday that an Australian court has approved its unit Yancoal Australia Ltd's merger with Australia's Gloucester Coal Ltd.

In a statement filed to the Shanghai Stock Exchange, Yanzhou said the Victorian Supreme Court had approved the proposed merger.

The approval comes after Chinese authorities, Australia's Finance Ministry, Australian Securities Exchange and Gloucester shareholders all gave the go-ahead to the deal, according to the statement.

Shares of the merged company will be traded on the Australian Securities Exchange at the end of June, the statement said.

Under the terms of the merger, Yanzhou will hold 78 percent of the new firm, while Gloucester's shareholders are set to receive A$639 million ($637.4 million) in cash and a 22-percent stake in the new entity.

Yanzhou's shares rose 0.38 percent to open at 21.4 yuan in Shanghai.