Rio Tinto Ltd &
Aluminum Corp of China {Chinalco} | Update Date: 02/20/09 |
| Date Announced: 02/12/09 |
Value (million $USD): 4.10 billion U.S. Dollar
6.27 billion Australian Dollar |
|
| Status: Pending | |
| TRANSACTION DETAILS |
|---|
| Date Announced | 02/12/09 | | |
| Date Originally Announced | 02/12/09 | | |
| Format | Acq. Part. Int. | Acquisition techniques | Privately Negotiated Purc |
| Attitude | Friendly | Agency | Australian Government; Unspecified Regulatory Auth. |
| Value | 4.10 billion U.S. Dollar
6.27 billion Australian Dollar | Advisor Fees | n/a |
| SYNOPSIS |
|---|
| AUSTRALIA - Chinese state- owned Aluminum Corp of China {Chinalco} planned to raise its stake to 14.9% from an undisclosed minority by acquiring bonds convertible into a further 9.5% stake in Rio Tinto Ltd, an iron, coal, and copper mining company, for 6.265 bil Australian dollars (27.975 bil Chinese yuan/$4.1 bil US) in cash, in a privately negotiated transaction. Concurrently, Chinalco planned to acquire a 50% interest in the Yarwun aluminium refinery, a 49% stake in Boyne Smelters Ltd, a 30% stake in Weipa Bauxite mine, a 30% stake in Rio Tinto Indonesia Holdings Ltd, a 15% stake in Hamersley Iron Pty Ltd, a 49.75% stake in Rio Tinto Escondida Ltd, a 30% stake in the La Granja Copper Development Project, a 25% stake in Kennecott Utah Copper Co, a 9% stake in Rio Tinto PLC and agreed to acquire notes convertible into an 8.5% stake in Shining Prospect Pte Ltd. The transactions were approved by the board of directors and were subject to regulatory approval. |
| TARGET |
|---|
| Name | Rio Tinto Ltd (Australia : RIO) |
| Industries | Copper ores; Bituminous coal and lignite surface mining; Bituminous coal underground mining; Anthracite mining; Primary production of aluminum; Miscellaneous nonmetallic minerals, except fuels; Gold ores |
| City | Melbourne, Victoria |
| State | n/a |
| Nation | Australia |
| Incorporated in | n/a |
| Public Status | Public |
| Business Description | Rio Tinto Ltd is a Melbourne based iron, coal and copper mining company, with interests in aluminum, industrial materials such as borates, industrial salt, talc and titanium dioxide feedstock, diamonds and other minerals and metals. It has operations in the global resource sector but most are centered in Australia and North America, while also having businesses in South America, Asia, Europe and southern Africa. The diversified mining company was established in 1962. |
| Advisors | Credit Suisse Group; Morgan Stanley |
| Target Sales | 45.03 billion U.S. Dollar
63.87 billion Australian Dollar |
|
| ACQUIROR |
|---|
| Name | Aluminum Corp of China {Chinalco} |
| Industries | Aluminum die-castings; Aluminum extruded products; Aluminum foundries; Aluminum rolling and drawing, nec; Aluminum sheet, plate, and foil |
| City | n/a |
| State | n/a |
| Nation | China |
| Incorporated in | n/a |
| Public Status | Government |
| Business Description | Aluminum Corp of China {Chinalco}, manufactures and wholesales alumina, primary aluminum, fabricated aluminum products. The Company is the largest shareholder of Aluminum Corp of China Ltd {CHALCO} as of June 30, 2008 with 41.82%. |
| Advisors | Nomura Securities Co Ltd; Blackstone Group LP; China International Capital Corp; JP Morgan & Co Inc |
| Acquiror Sales | n/a |
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