Reuters quoted financial adviser UBS said Chinese miner Yanzhou Coal Mining Co AUD 2 billion bid to take over Australia's Gloucester Coal has a big chance of success.

Mr David Chin UBS head of investment banking, Asia said "We feel that Gloucester is already a listed company and its parent is also a listed company, in Singapore. There should be few obstacles and the chance of success is very big."

UBS' Mr Chin forecast that overseas resources would continue to be the main acquisition targets by Chinese firms, but Chinese interest in foreign industrial companies is also increasing.

He said that "We feel that there would be more and more outbound acquisition's in the industrial sector, adding that it was a pity that China Pangda Automobile Trade Co failed to buy Swedish car marker Saab after General Motors blocked the deal.”

Mr Chin also sees a trend of more and more Chinese entrepreneurs willing to give up control of the companies they founded, creating more acquisition opportunities for foreign investors. He said that Diageo acquisition of Chinese spirits maker Sichuan Swellfun in which UBS is acting as an adviser is proceeding smoothly.

Mr Chin also sees few regulatory obstacles in Tingyi Holdings Corp planned acquisition of PepsiCo Inc interest in 24 soft drink bottlers in China.

Yanzhou Coal said in late December that it plans to merge its Australian unit with Gloucester Coal in a deal that would create one of Australia largest listed coal companies. Gloucester's major shareholder Noble Group backed the proposed deal.
The deal is another case of a Chinese company buying up natural resource assets in Australia, tapping its commodity base to fuel massive residential, commercial and infrastructure projects across China.

(Sourced from Reuters)