This FIRB approval clears the way for Coal & Allied to lodge a draft scheme booklet with the Australian Securities and Investments Commision for regulatory approval. It expects to lodge the booklet this week.
The lodgement, Coal & Allied said, should allow it to make an application to the Federal Court of Australia later this month for orders convening shareholders to consider the scheme proposal.
Subject to the court approval it plans to hold a shareholder meeting at the end of November.
In addition, the scheme proposal is subject to no regulatory action in relation to it, regulatory approvals being received, no material adverse change occurring and no prescribed occurrences.
Coal & Allied could now be worth $10.8 billion after Rio and Mitsubishi increased the bid to $125 per share on August 26.
The companies signed a bid implementation agreement after Coal & Allied directors backed the revised offer.
The increased bid was reached after a proposal response committee made up of Coal & Allied directors Bryan Davis, Chris Renwick and Annabelle Chaplain reviewed the initial indicative proposal.
Rio and Mitsubishi announced its original proposal on August 8, offering Coal & Allied shareholders $122 a share.
The cash consideration per share, Coal & Allied said, was less the proposed special dividend of up to $8 each.
Rio Tinto first started accumulating an interest in Coal & Allied in 1977 and by 1991 owned 70% of the Hunter Valley miner.
At the moment, Rio has a 75.5% interest, with Mitsubishi owning 10.2% in Coal & Allied.
If the scheme is successful, Rio will have an 80% stake in Coal & Allied, leaving Mitsubishi with the remaining 20%.
Coal & Allied gained 12c to $123.41 while Rio was down $2.36 at $59.44 in afternoon trade.
