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| US Authorities Give Consent To Rio Tinto, Chinalco Strategic Partnership |
| = Following approvals of Australian ACCC, German Federal Cartel Office = |
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The Committee on Foreign Investment in the United States (CFIUS) gave clearance regarding the proposed issue by Rio Tinto of convertible bonds to Aluminium Corporation of China Limited (Chinalco) and the indirect minority investment by Chinalco in Rio Tinto's US subsidiary Kennecott Utah Copper Corporation, Rio Tinto announced May 15. These were contemplated by the strategic transaction announced by Rio Tinto and Chinalco on February 12, 2009. Rio Tinto and Chinalco jointly field a voluntary notice with CFIUS in connection with the transaction. The receipt of CFIUS clearance satisfies a regulatory pre-condition to the transaction. This clearance follows receipt of approvals from the Australian Competition and Consumer Commission (ACCC) on March 25 and the German Federal Cartel Office on March 31. Judgement of Australian FIRB is expected to come out in next June. <Skeleton of the February 12 transaction> Chinalco will invest in certain aluminium, copper and iron ore joint ventures totalling US$12.3 billion. The issue of subordinated convertible bonds will be for a total consideration of US$7.2 billion. If converted, the subordinated convertible bonds would increase Chinalco's current shareholding to 19.0% in Rio Tinto plc and 14.9% in Rio Tinto Limited, equivalent to an 18.0% interest in the Rio Tinto Group. Rio Tinto will thereby have a total cash proceeds of US$19.5 billion. Establishment of joint ventures is proposed in emerging economies including China. |
| last modified : Thu 21 May, 2009 [11:35] |
