Guangdong Rising Asset Management (GRAM), a provincial sovereign wealth fund, said it had agreed to buy Australian coking coal miner Caledon Resources (CDN.LSE, CCD.ASX) for US$407 million, the Financial Times reported. The offer price represents a premium of £1.12 (US$1.80) over Caledon’s closing price last Friday. However, the agreement has yet to be formally approved by Chinese regulators and the coal producer’s shareholders. The investment is reportedly part of Guangdong’s attempts to develop its steel industry. GRAM owns a controlling interest in Perilya (PEM.ASX), an Australian mining firm 52% owned by lead and zinc miner Shenzhen Zhongjin Lingnan Nonfemet (000060.SZ), which last month launched a US$179 million friendly takeover bid for Canada’s GlobeStar Mining (GMI.TSX) to expand its operations into gold mining.
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