Hargreaves calls halt to UK Coal merger talks

Britain's biggest coal miner, UK Coal, today said Hargreaves Services, the energy haulage company, had walked away from merger talks.

Hargreaves approached UK Coal about a merger in March but insiders said it quickly became clear that the two would not make a good match.

The haulage firm said it "recognised that UK Coal has many valuable assets, but does not intend to pursue such a merger".

UK Coal also said production at its seams in Kellingley, Thoresby and Daw Mill in the West Midlands was running in line with expectations and reiterated it would mine around 7.6 million tonnes of coal this year.

In April, it set out plans to sell a chunk of its 28,000-acre portfolio of agricultural land. It said the sites were attracting "significant interest".

Shares in UK Coal dropped 1p to 40.5p, while Hargreaves Services rose 5.5p to 640.5p.