rio-tinto-drops-chinalco-bid-announces-new-deal

Rio Tinto drops Chinalco bid, announces new deal

Rio Tinto announces a $15.2 billion rights issue and a joint venture with BHP Billiton, scuttling a proposal by Chinalco to invest $19.5 billion in the natural resources company.

Rio Tinto on Friday cancelled a pending deal with Chinese state-owned enterprise Aluminum Corporation of China Chinalco, preferring to launch a $15.2 billion rights issue and enter a joint venture with Australian miner BHP Billiton.

The size of the rights issue coupled with the fact that it is fully-underwritten in two jurisdictions has resulted in a role for a number of banks. Credit Suisse, J.P. Morgan Cazenove and Macquarie are joint global co-ordinators -- a selection which likely reflects both the willingness and ability of the said firms to provide underwriting. Deutsche Bank, Morgan Stanley, RBS and Société Générale are also playing a role.

Rio Tinto simultaneously announced a 5050 joint venture...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222