Wesfarmers is planning to dip into its war chest from the spin-off of Coles and the sale of its coal assets and Kmart Tyre and Auto, proposing a $1.5 billion acquisition of rare earths miner Lynas.Wesfarmers has made a conditional, non-binding $1.5b takeover bid for rare earth miner Lynas Corporation
Lynas mines at Mt Weld in Wesfarmers' home state of WA and is the major supplier of rare earths outside China. Rare earths are used for electronics, energy storage and medical imaging, among other applications. Today, Wesfarmers said its offer is conditional on due diligence, regulatory approval and ensuring the relevant operating licences in Malaysia are in force and will remain in force for a"satisfactory period" following the completion of the transaction.
Lynas' Malaysian licence is up for renewal in September and new conditions pose a major regulatory hurdle for the miner.