Hargreaves Services plc is no longer pursuing a merger deal with the UK’s biggest coal mining firm, UK Coal plc.
The two companies announced that they were in discussions about a possible merger in March. However, Hargreaves Services, who own Yorkshire’s Maltby Colliery, has now confirmed that it will not be pursuing its interest, although it recognised that UK Coal had “many valuable assets”.
While confirming that it is no longer in an offer period for the purposes of the City Code on Takeovers and Mergers, UK Coal also stated that it has completed transitioning the production profile of its deep mining business: “The new seams at Kellingley and Thoresby are in full production and Daw Mill has completed the ramp-up on its new panel. Current rates of production from each of these mines are in line with expectations and the Group continues to expect to achieve 2010 production of around 7.6 million t in an improving pricing environment.”
The Group also confirmed that its property business continues to perform in line with expectations and that there had been significant interest in plans to dispose of a significant proportion of its agricultural estate and to explore joint-ventures on large parts of its brownfield land portfolio.
Read the article online at: https://www.worldcoal.com/coal/11062010/hargreaves_services_pull_out_of_merger_discussions_with_-uk_coal/