North East firm Hargreaves in talks with coal mining company

Mar 10 2010 By Karen Dent, The Journal

DURHAM-BASED services firm Hargreaves today confirmed it is involved in possible merger talks with the UK’s last major coal producer.

With a market value about a quarter more than that of UK Coal, it is likely that Hargreaves Services would be the senior partner in any merger.

UK Coal, the UK's last major coal producer said yesterday it had received a merger approach from an unnamed third party.

Today Hargreaves confirmed it was that third party, issuing the following statement to the stock market.

“Hargreaves confirms that, as part of its regular consideration of a range of strategic opportunities, the board is in the early exploratory stages of cautiously reviewing a potential merger with UK Coal.

“Discussions with UK Coal are at a very early stage and there is no certainty that any transaction will result.

“A further announcement will be made when appropriate.”

UK Coal is keen to reduce its reliance on its deep mines, which are expensive to maintain and have suffered production problems leading to large losses.