Chinalco and RioTinto: A Good deal For Everyone!

Chinalco and China entered the big league of global mergers and acquisitions with the announcement today that Chinalco plans to invest $19.5 billion in Rio Tinto. The announcement confirmed rumors that have been in the market over the past several days that the two companies were discussing a possible deal.

MTD has covered the Rio Tinto saga ever since BHP Billiton first announced in November 2007 that it planned to acquire its Australian rival. In High Noon for China and Rio Tinto, I described why the stakes were high for China in the proposed deal and suggested that China use its newly found financial muscle to play a role in the outcome. As the drama with BHP played out over the past fifteen months, Chinalco became involved and the end game seemed all but certain.

In a post last week, I explained what an increased stake in Rio Tinto means for China and Chinalco,  as well as for steel users worldwide:

A good deal for everyone!

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