Rio Tinto has once again named Yancoal Australia as the preferred buyer of its Australian

Coal & Allied thermal coal operation over Glencore as Yancoal improved its  offer to $2.69 

billion. 

The miner said in a statement Monday that its shareholders had voted in favor of Yancoal

due to the improved offer and a "high level of completion certainty." 

In the newest offer in a bidding war for Coal & Allied, Yancoal Monday upped its offer to $2

.45 billion in cash payable in full on completion, $240 million  via unconditional guaranteed 

royalty payments, an increased break fee amount of $225 million provided by Yancoal par

ent company Tankuang and the receipt or waiver of all regulatory approvals required to cl

ose the transaction. 

Rio added that Yancoal's offer also had "a faster and more certain timetable," and present

ed greater net present value "given the  uncertainty  of  receipt of certain cash flows under 

Glencore's revised terms." 

On Friday Glencore had upped its offer to $2.675 billion after Rio had snubbed its previous 

offer in favor of Yancoal's. 

It said now  that  all  parties  had  provided  improved  terms, it was in  the  best interest of 

shareholders to put Yancoal's newest offer to a vote on the current timetable. Rio will hold 

meetings Tuesday and Thursday to seek shareholder approval. 

Rio  Tinto CEO Jean-Sebastien  Jacques said in the statement that the company believed 

that "it is in the  best interests of our shareholders to take the greater certainty of Yancoal

's strong proposal." 

RBC Capital Markets analysts said the  competition  around the  Coal &  Allied assets might 

be an indicator of the improving health of mining companies across the board, and represe

nt a shift in philosophy where companies were willing to seek merger and acquisition options 

for growth.