King & Wood Mallesons (KWM) has advised long-term client Glencore on the sale of its Glencore Rail (GRail) coal haulage business in the New South Hunter Valley to Genesee & Wyoming (GWA) for A$1.14 billion.

KWM also advised its long term client GWA in relation to the financing aspects of the acquisition with Allens Linklaters advising GWA on the acquisition.

The multi-disciplinary KWM team advising Glencore was led by Partner Nicholas Pappas. Partner Adrian Perkins, Senior Associate Kate Lindner and solicitors Paul Kramer and Mary Brady supported Nicholas on the M&A aspects of the transaction while Partner Andrew Maynes advised on the Financing. Partner Tim Sherman and Special Counsel Justin Rossetto provided Tax advice; Partner Wayne Leach provided Competition advice and Partner Malcolm Brennan advised on the FIRB aspects.

The team advising GWA on the financing aspects was led by Partner Peter Doyle with support from Senior Associate Brendan Smith and solicitor Jack Hanford.

GRail currently hauls approximately 40 million tonnes per year of Glencore’s Hunter Valley coal production to the Port of Newcastle.

In conjunction with the acquisition of GRail, GWA will enter into a 20-year coal haulage contract with Glencore Coal Australia (GCA). The coal haulage contract will contain rights, subject to certain limitations, to exclusively haul all coal produced at GCA’s existing mines in the Hunter Valley to the Port of Newcastle and will have minimum guaranteed volumes over the first 18 years.