Xstrata is on the verge of acquiring the Colombian coal mining operations of the U.S. group, Drummond, for $8 billion, Reuters, citing The Sunday Times. Xstrata was the only suitor to be able to arrange a fully-financed offer for the business by the deadline closing December 2010.
Bank of America-Merrill Lynch, which is running the auction for the coal mine, had extended the timeframe to provide other bidders more time to arrange financing. The other bidders include Vedanta Resources and Essar Global. A logo of the Swiss mining company Xstrata is shown at the Headquarters in Zug March 26, 2008.
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