Rio to walk away from BHP deal – Paper
Anglo-Australian mining giant Rio Tinto is preparing to walk away from its planned $US116 billion venture with BHP Billiton to merge their Western Australia iron ore operations, according to a media report.The Sydney Morning Herald, citing sources close t
Jamie Gray
Wed, 06 Oct 2010
Anglo-Australian mining giant Rio Tinto is preparing to walk away from its planned $US116 billion venture with BHP Billiton to merge their Western Australia iron ore operations, according to a media report.
The Sydney Morning Herald, citing sources close to the Rio board, said the company was preparing to inform BHP of its decision.
The main reasons for Rio's decision appeared to be its improving financial fortunes, pressure from shareholders and the conclusion that the deal favoured BHP, the paper said.
There has been no official comment on the article from either Rio or BHP.
The deal, which was struck when Rio’s finances were under some strain, was likely to have encountered stiff regulatory resistance because it would have created a duopoly, with Brazil’s Vale, in the international seaborne iron ore market.
Jamie Gray
Wed, 06 Oct 2010
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.