Chinalco ups ante for Rio Tinto

Chinalco invests $19.5 billion in Rio Tinto through a combination of joint ventures and convertible bonds, in a deal questioned by analysts and the media.

Aluminium Corporation of China Chinalco has agreed to invest a further $19.5 billion in Australian natural resources firm Rio Tinto in what will rank as China's largest outbound investment to date. The unlisted Chinese metals and mining firm will invest $12.3 billion in aluminium, copper and iron ore joint ventures and another $7.2 billion in two tranches of convertible bonds.

The bonds will increase Chinalco's shareholding in the Rio Tinto Group to 18% upon conversion. The bonds have a...

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