Chinalco said to back Rio Tinto’s bid for Glencore

ALUMINIUM Aluminum Corp. of China is expected to support Rio Tinto’s proposed acquisition of Glencore, a merger that would enhance the Chinese company’s exposure to copper whilst creating the world’s largest mining group.Bloomberg News said on Monday that Chinalco, which holds a 14.55% stake in Rio Tinto’s London-listed shares, was in discussions with Chinese authorities regarding the transaction.Whle final approval requires consent from Beijing, the state-owned enterprise appears willing to accept a reduced shareholding in the enlarged entity, said Bloomberg citing people familiar with the matter. Chinalco may seek compensation from Rio Tinto for the dilution, though details remain unclear, the newswire said.Rio Tinto and Glencore confirmed merger discussions earlier this month but have yet to disclose the proposed structure. Under UK Takeover Panel regulations, Rio Tinto must either firm up its offer or withdraw by February 5. Previous negotiations in late 2024 collapsed over disagreements regarding the premium Rio Tinto was prepared to pay.Chinalco has maintained a significant position in Rio Tinto for nearly two decades, with its current holding approaching the 14.99% threshold agreed with Australia during the original investment.China’s approval remains essential for major mining transactions given its position as the dominant consumer of most metals. Beijing’s antitrust regulators will scrutinise any combination closely. When Glencore acquired Xstrata in 2012, Chinese authorities granted approval subject to conditions including the disposal of a Peruvian copper asset.The post Chinalco to back Rio Tinto’s bid for Glencore appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com