Hargreaves confirms merger talks
Coal miner Hargreaves Services has confirmed it is in early-stage talks over a possible merger with rival UK Coal, as reported in yesterday's Yorkshire Post.
Doncaster-based UK Coal, Britain's largest coal miner, said on Tuesday it was assessing a merger approach that could help resolve its deep mine problems, but denied it had received a cash offer from shareholder Peel or any other party.
Production difficulties at UK Coal's five deep mines in the UK and contract pricing issues have impacted its finances and share price in recent months. If it becomes part of a larger group this could help mitigate this volatility. "Discussions with UK Coal are at a very early stage and there is no certainty that any transaction will result," Hargreaves said.
The firm, the largest independent importer of coal into the UK, bought the Maltby deep coal mine in south Yorkshire from UK Coal in 2007.