(Bloomberg) -- Glencore Plc submitted a proposal to buy coal assets from Rio Tinto Group for $2.55 billion cash plus a price-linked royalty.

The Baar, Switzerland-based commodities producer and trader is looking to buy 100 percent of Coal & Allied Industries Ltd, it said in a statement Friday

The deal would be funded from existing cash and committed facilities and is subject to regulatory conditions. Glencore has also agreed to buy Mitsubishi Corp.’s stakes in the Hunter Valley Operations and Warkworth ventures for $920 million.

“There is no certainty that any transaction will be concluded,” it said. “Glencore will only be bound once a binding share purchase agreement is concluded with Rio Tinto.”

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