Australian coal producer New Hope Corporation has agreed to acquire the remaining shares in Malabar Resources in an all-share transaction valuing the privately held coal miner at approximately A$1.8 billion (US$ value not specified), paving the way for a combined business targeting nearly 19 million tonnes of annual coal production.

The companies announced on Monday that they had entered into a binding agreement under which New Hope, which already owns approximately 26% of Malabar, will acquire the outstanding shares through a court-approved scheme of arrangement.

Under the proposed transaction, Malabar shareholders will receive 0.5 New Hope shares for each Malabar share held, implying a value of A$2.92 per share based on New Hope’s October 16 closing price of A$5.84.

The transaction gives Malabar an implied enterprise value of approximately A$2.4 billion, including debt, and would create a combined coal producer with a pro forma market capitalization of roughly A$6.3 billion.

Existing New Hope shareholders would retain approximately 79% of the enlarged company, while Malabar shareholders excluding New Hope would own the remaining 21%.

The acquisition would give New Hope full ownership of the Maxwell Underground Mine in New South Wales’ Upper Hunter Valley, located near its existing Bengalla coal operation.

Maxwell began longwall production in April 2026 and is undergoing a phased expansion. The mine is expected to reach annual saleable coal production of up to 5.5 million tonnes following the expansion of its longwall operations and contributions from its bord-and-pillar mining operation.

The facility has approval to extract up to 8 million tonnes of run-of-mine coal annually over 20 years. Malabar also controls estimated coal resources of approximately 2.32 billion tonnes, providing additional opportunities for long-term development.

Maxwell can produce both high-grade thermal coal and semi-soft coking coal, giving the combined company greater flexibility to serve power generation and steelmaking customers.

The acquisition would consolidate three major Australian coal operations—Maxwell, Bengalla and New Acland—under New Hope’s ownership.

The companies expect potential savings and operational improvements through shared infrastructure, rail logistics, coal blending, marketing, procurement and financing.

Malabar also holds interests in Newcastle coal export infrastructure, including Newcastle Coal Infrastructure Group and Port Waratah Coal Services, providing additional opportunities to coordinate coal transportation and exports.

New Hope said the all-share structure would preserve its financial flexibility while allowing the combined company to pursue refinancing of Malabar’s existing debt facilities, potentially reducing borrowing costs.

The transaction comes as Australian coal producers seek to maximize output from established mining regions through consolidation, infrastructure integration and the development of already-approved resources.

For New Hope, the acquisition would strengthen its position in the Hunter Valley coal industry while adding underground mining capabilities to its established open-cut operations.

The boards of both companies have endorsed the transaction. Malabar’s directors, excluding New Hope representative Rob Bishop, have recommended shareholder approval, subject to an independent expert’s assessment and the absence of a superior offer.

Malabar Executive Chairman Wayne Seabrook and director Tony Haggarty are expected to join New Hope’s board following completion.

The deal remains subject to shareholder, court and regulatory approvals, including clearance from Japan’s Fair Trade Commission.

The companies expect to complete the transaction by March 2027.

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