GVK Purchases Hancock: A Long Term Benefit If Short Term Risks Overcome

India-based GVK Coal Developers (Singapore), a member of the GVK Group which includes power plant operator GVK Power & Infrastructure (GVKPIL), has reached an agreement with Australia-based mining company Hancock Prospecting to pay US$1.26bn for a majority stake in the company's coal assets in Queensland, Australia. CFW once again reiterates that while GVK's attempt to vertical integrate its operations is a prudent one, financial concerns about the purchase of the assets cannot be discounted.

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