Much to the delight of its shareholders, the Yancoal Australia Ltd (ASX: YAL) share price has been the best performer on the ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) today.
In afternoon trade the coal miner's shares are up 40% to 38 cents.
Why has it jumped?
This morning the company announced that Rio Tinto Limited (ASX: RIO) shareholders have approved the sale of its Coal & Allied business to Yancoal for US$2.45 billion.
Rio will also receive $240 million via unconditional guaranteed royalty payments, payable over five years.
According to today's release, Yancoal expects the acquisition to complete in the third quarter. When it does it will make the company the largest pure-play coal producer in Australia.
The coal miner's shares have now gained in excess of 340% in the last 12 months.
The Rio Tinto Limited share price is flat on the news.
