Reuters reported that privately owned Essar Group has launched a surprise AUD 144.2 million bid for Australian coal minnow Rocklands Richfield Ltd above an earlier offer from Jindal Steel & Power.

Coke producer and coal explorer Rocklands said in a statement that Essar on Sunday offered Rocklands AUD 0.50 per share, trumping a AUD 0.42 per share bid launched by Jindal Steel & PowerLimited in September.

Perth based Rocklands, which had previously agreed to JSPL deal, now said it would hold a board meeting to consider the merits of the competing proposals.

The takeover tussle comes as Indian steel mills ramp up their search for raw material overseas in a bid to feed voracious domestic demand for steel.

(Sourced from Reuters)