Chinalco wins nod to lift holdings in Rio Tinto
Aluminum Corp of China (Chinalco), China’s top producer of aluminum, has secured approval from Australian regulators to lift its stake in Rio Tinto Group to 11% from the previous 9%, which added uncertainties to rival miner BHP Billiton’s takeover proposal of Rio for US$143 billion.
Wayne Swan, Federal Treasurer of Australia, has decided to give the green light to the Chinese’s company to raise shareholdings in Rio after careful consideration of national interest issues, adding that Chinalco had agreed not to seek representation on Rio’s board.
Earlier this year, Chinalco paid US$14.05 billion with Alcoa for a 12% stake in Rio’s London-listed shares, equivalent to 9% of the mining company’s combined Australian and London equities, positioning itself the largest holder of the latter’s tradable shares.
Chinalco is diversifying its business portfolio to become a globally integrated mining company. It is now engaged in injecting assets of other metals to its listed unit, Aluminum Corp of China (Chalco), which has all its business related to aluminum at present.
Chinalco bought Peru Copper for US$860 million in August last year.
Tags: aluminum, Chinalco