New Hope has announced it would acquire Malabar Resources, according to a LinkedIn post that also discussed Chinese economic data and coal markets. The post did not disclose the amount New Hope would pay for Malabar Resources.
The same post said the market response to the announcement was positive, noting that New Hope's share price rose in the previous day's trade, whereas an acquiring company's share price often falls after this type of deal.
The post linked the announcement to conditions in the coal market. It said thermal coal prices in China are at three-year highs, and that Breakwave Advisors reports Chinese domestic coal production is struggling, creating an opportunity for Australian coal exports to capitalise. The post said this may also help explain the positive market response to the New Hope announcement.
The post also covered Chinese quarterly data, reporting that exports remain strong and generated a record trade surplus while the domestic economy continues to struggle with weak consumer demand and an anaemic property market. It cited The New York Times reporting that China's National Bureau of Statistics announced gross domestic product grew 1.2% from the second quarter of this year, and that if that pace continued for a year the Chinese economy would expand at an annual rate of about 4.9%. It said industrial metals rallied in overnight markets except copper, which fell a modest 0.5%, while gold edged lower and energy markets remained at elevated levels.