Rio Tinto (RTP) Higher After Chinalco Deal Terminated, Replaced With Share Sale and BHP Billiton Deal
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Shares of Rio Tinto plc (NYSE: RTP) are higher after the mining company terminated its deal with Aluminium Corporation of China ("Chinalco") (NYSE: ACH), in favor of a share sale and iron ore venture with BHP Billiton (NYSE: BHP).
Rio Tinto said it planned to raise $15.2 billion by selling new stock to its shareholders in a rights issue, which will remove its net debt to $23.2 billion.
Rio Tinto turned to former suitor BHP Billiton, signing a non-binding agreement to establish a production joint venture covering the entirety of both companies' Western Australian iron ore assets. The joint venture will encompass all current and future Western Australian iron ore assets and liabilities and will be owned 50:50 by BHP Billiton and Rio Tinto.
Rio Tinto said it planned to raise $15.2 billion by selling new stock to its shareholders in a rights issue, which will remove its net debt to $23.2 billion.
Rio Tinto turned to former suitor BHP Billiton, signing a non-binding agreement to establish a production joint venture covering the entirety of both companies' Western Australian iron ore assets. The joint venture will encompass all current and future Western Australian iron ore assets and liabilities and will be owned 50:50 by BHP Billiton and Rio Tinto.
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