Chinalco Says Very Disappointed About Rio Deal Collapse
June 04 2009 - 10:29PM
Dow Jones News
Aluminum Corp. of China, or Chinalco, said Friday it is very
disappointed Rio Tinto Ltd. (RP) has decided to terminate their
planned US$19.5 billion alliance and will keep a watch on the
miner's fresh plans for an iron ore joint venture with BHP Billiton
Ltd. (BHP.AU.
Chinalco Chairman Xiong Weiping said the Chinese group had
worked hard to engage with Rio on potential changes to the deal
terms to reflect the changed market conditions and feedback from
shareholders and regulators.
"As a result, we are very disappointed with this outcome," he
said in a statement.
"We continue to believe our proposal presented an outstanding
value-creating opportunity for all Rio Tinto shareholders and would
have provided a strong platform for a long-term strategic
partnership between the two companies."
Chinalco will monitor developments at Rio Tinto as the company's
current largest shareholder and will monitor plans Rio has now
announced for an iron ore joint venture in the Pilbara regions of
Western Australia.
-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094;
alex.wilson@dowjones.com