BHP Says to Complete Takeover of Rio Tinto

BHP says to complete takeover of Rio Tinto

CANBERRA, Feb. 6 (Xinhua) — The world’s largest mining companyBHP Billiton Ltd said Wednesday it would take over its rival Rio Tinto without the support of the Chinese aluminum company Chinalco.

BHP Billiton’s chief executive Marius Kloppers told reporters in Melbourne on Wednesday the improved offer for Rio Tinto was “favorable” for the target’s shareholders including Chinalco.

BHP Billiton, which had, under UK law, until Wednesday London time to formalize its bid for Rio Tinto, announced on Wednesday anoffer of 3.4 of its shares for every Rio share.

The offer has a minimum acceptance condition of more than 50 percent of the publicly held shares in each of Rio Tinto Ltd and Rio Tinto plc.

“By the terms of our offer, absolutely,” the Australian Associated Press quoted Kloppers as saying, when he said the takeover could be completed without the support of Chinalco and its junior US partner, Alcoa Inc.

“I think the offer terms are very favorable to all the Rio Tinto shareholders and indeed Chinalco as well,” Kloppers said.

Chinalco and Alcoa teamed to secure a 12 percent stake in Rio Tinto’s London-traded shares on Friday for 14 billion U.S. dollars.

Kloppers said discussions with Chinalco and Alcoa for the potential sale of assets was “something that hasn’t been contemplated.”

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