According to a Dow Jones report, Yanzhou and Felix have both agreed to a deal.
A person familiar with the situation told Dow Jones the offer for Felix was pitched below $20 per share.
When Felix suspended trading this morning, the share price was at $16.90. Yanzhou has also entered a trading halt.
The deal will require approval by Australia’s Foreign Investment Review Board.
Yanzhou already has interests in Australia, having bought the Southland (now Austar) longwall top coal caving mine from Gympie Gold for $US23 million in 2004 after a fire ravaged the colliery the previous Christmas.
