China's Yanzhou Coal to buy Felix for $2.9bln

[Coventina]

Source: Reuters

SYDNEY, Aug 13 (Reuters) - China's Yanzhou Coal Mining Co (1171.HK) agreed to buy Australian coal miner Felix Resources Ltd (FLX.AX) for $2.9 billion, both firms said on Thursday, further underscoring China's growing appetite for resources assets.

The deal comes amid strained investment ties between the two nations, with China formally arresting four staff from Anglo-Australian miner Rio Tinto (RIO.AX) this week on accusations they stole state secrets.

China's relentless pursuit of Australian resource companies is also despite the Australian government rejecting China's state-owned Minmetals bid for distressed miner OZ Minerals Ltd (OZL.AX) this year, forcing Minmetals to submit a revised bid.

Yanzhou's proposed takeover of Felix is subject to regulatory approvals in Australia, including from the Foreign Investment Review Board which vets all foreign sovereign investments.

Read more: http://www.reuters.com/article/rbssCoal/idUSSYD36232920090813