The mining giant “Rio Tinto” acquires a Canadian competitor for 3.3 billion dollars

The mining giant “Rio Tinto” acquires a Canadian competitor for 3.3 billion dollars
The mining giant “Rio Tinto” acquires a Canadian competitor for 3.3 billion dollars

The Anglo-Australian mining giant “Rio Tinto” (Rio Tinto) reached an agreement in principle to buy the rest of the Canadian “Turquoise Hill Resources” (Turquoise Hill Resources) for 3.3 billion dollars. The deal will provide the company with direct ownership of the large Oyu Tolgoi copper mine in Mongolia, Reuters reported, citing BTA.

Rio Tinto will pay C$43 per share out of its own funds for the remaining 49 percent of Turquoise Hill Resources that it does not yet own. It is with 19 percent more than the stock exchange price of the Canadian company’s sharesas well as $3 per share more than last month’s bid of C$40 per share.

An independent committee appointed by Turquoise Hill Resources to determine whether the offer was in the interests of minority shareholders indicated that “the fair market value (…) is in the range of C$42 to C$58 per common share.”

The deal, which is awaiting shareholder approval, would give Rio Tinto a 66 percent stake in the Oyu Tolgoi underground mine – the world’s largest known copper and gold depositswhich are located 550 kilometers south of the capital of Mongolia, Ulaanbaatar.

The copper market expects increased demand due to growth in the production of electric vehicles, their charging stations and other renewable energy infrastructure as the world prepares for decarbonisation.

Rio Tinto and the Mongolian government, which owns the remaining 34 percent of the mine, ended a long-running dispute several months ago over the cost of expanding the mine, which totaled $7 billion. Mining activities from the new extension are scheduled to begin in 2023.

The article is in bulgaria

Tags: mining giant Rio Tinto acquires Canadian competitor billion dollars