Davis LLP advised Marubeni Corporation in connection with its acquisition, together with Winsway Coking Coal Holdings Limited, a Hong Kong company, of Grande Cache Coal Corporation and Grande Cache Coal LP, for a purchase price of approximately $1 billion. The acquisition closed on March 1, 2012.
Grande Cache Coal LP owns and operates a coal mine with more than 300 million tonnes of coal resources. Marubeni and Winsway plan to expand the mine’s production. Global demand for hard coking coal is high and expected to continue to grow as a result of increased crude steel production in newly emerging economies and continued strong economic growth. This transaction was particularly important for Marubeni because it allows Marubeni to diversify its sources of hard coking coal, which are heavily concentrated in Australia. The acquisition also provides Marubeni with a platform for future growth in the coal sector in Canada.