Hargreaves abandons UK Coal merger plans
Negotiations between Hargreaves and UK Coal have been called off.
Hargreaves Services has broken off negotiations with UK Coal
after dropping its merger plans.
Earlier this year, the north-east based company outlined its
intentions to push ahead with negotiations with the country's
biggest coal mining firm.
However, while acknowledging that UK Coal possesses a number of
attractive propositions, including its three active deep mines in
the Midlands, it has now confirmed that it will not be moving
forwards with its merger plans.
"While recognising that UK Coal has many valuable assets,
(Hargreaves) does not intend to pursue such a merge," a statement
issued by the company read.
According to the Yorkshire Post, the merger plans were dropped
partly as a result of the "scale and complexity" of the proposed
deal, in addition to concerns relating to the size of the UK coal
pension scheme deficit.
At the end of last month, UK Coal confirmed that it has entered
guilty pleas in respect to seven charges of breaching health and
safety regulations, with three employees set to go on trial at
Leeds Crown Court next year.