New Delhi: Coal India is getting closer to clinching an overseas acquisition. It’s planning to make a bid for some of the assets of Massey Energy. The company is America’s fourth biggest coal miner and has a market capitalization of $5.16 billion. Partha Bhattacharyya, the chairman of Coal India said that while the deal was likely to be expensive, not making an acquisition could end up being even more costly. Coal India currently has reserves of some Rs39,000 crore. Its asset purchase from Massey is likely to cost about Rs900 crore.
Also in corporate, Mahindra and Mahindra is all set to pick up a controlling stake in Ssangyong Motor. The company will pay $463 million all in all. Broken up, that’s $378 million in new stock and a purchase of $85 million worth of corporate bonds. Mahindra will get a full 70% stake in Ssangyong. As part of its plan to revitalize Ssangyong, Mahindra plans to add up to three new models to the company’s existing line of SUVs. It’s hoping to get access to both Ssangyong’s technology and to new markets. Mahindra and Mahindra’s shares dropped 0.87% on the BSE to 759.70.
Tensions in the Korean peninsula and concerns about Ireland’s debt pulled bourses down globally- and India stocks followed suit. The Sensex closed 266 points lower on the BSE at 19,692. And the Nifty fell 75 points to end at 5,935.