Whitehaven set to buy BHP’s Queensland met coal mines

The news: Whitehaven Coal has secured a deal to buy the BHP Mitsubishi Alliance’s Daunia and Blackwater metallurgical coal mines in Queensland.

The numbers: Whitehaven shares were placed in a trading halt ahead of the announcement on Wednesday. BHP said in February its BMA JV would divest the two mines, with analysts estimating Blackwater’s price at around USD2.5 billion ($3.9 billion) and Daunia at USD800 million.

The context: BHP on Wednesday confirmed Whitehaven has been chosen as the preferred bidder for the two mines. The independent coal miner last month confirmed its interest in the mines after temporarily suspending a planned share buyback. The auction saw Whitehaven compete with at least two rival bidders, BUMA and Stanmore Resources for the mines, according to media reports.