Caledon agrees to Chinese buy

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The Chinese quest to secure supplies of leading commodities continued yesterday, with Australia's Caledon Resources agreeing to be bought by state-owned investment group Guangdong Rising Assets Management Co for £252m.

Caledon's AIM-listed stock rose nearly 17 per cent yesterday to 98p after the coking coal producer unveiled the possible 112p per share cash offer, which is subject to certain conditions, including the unanimous recommendation of Caledon's board and Chinese regulatory clearances.

The price represents a 33 per cent premium to the Australian group's share price at the close on Friday.