Alchemy pulls out of UK Coal talks

The London-based private equity firm has withdrawn from the bidding process for the British mining company.

A consortium of bidders led by private equity firm Alchemy Partners has ended talks with mining company UK Coal.

A statement on UK Coal’s website reads: “The board of UK Coal Plc…announces that following a meeting with certain members of the consortium (being Alchemy Partners LLP, Morston Assets Limited and the Buccleuch Group) it has been notified that the consortium and its individual members do not intend to make an offer for the company.

The statement added that discussions with the consortium indicated that the position of the consortium or its individual members could change if a rival bid was made for UK Coal.

This latest, third, bid follows an initial approach by the consortium in April and then again in June, both of which were rejected, the Financial Times reported today.

Morston Assets is a Norfolk-based real estate firm jointly owned by Kwik-Fit founder Sir Tom Farmer and managing director Tom Harrison. The Buccleuch Group is an investment vehicle owned by the Duke of Buccleuch.

UK Coal is a British producer of coal, supplying around 10 percent of the country’s energy needs for electricity generation, according to the company’s website. The group has seven deep mines located in central and northern England and employs around 4,200 people.

Alchemy Partners declined to comment on developments.