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Rio Tinto Rejects Glencore Merger Advance
Oct 7, 2014 3:17 AM
By Deena Taylor
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RAPAPORT... Rio Tinto dismissed reports that it was in talks to merge with Glencore, the Switzerland-based multi-commodity trading and mining company. Rio Tinto confirmed that it was approached by Glencore for a deal, which would be valued at approximately $160 billion, according to reports.
"The Rio Tinto board, after consultation with its financial and legal advisers, concluded unanimously that a combination was not in the best interests of Rio Tinto’s shareholders," according to the statement that was issued following press speculation regarding a merger. "The board’s rejection was communicated to Glencore in early August and there has been no further contact between the companies on this matter," the company stressed.
Rio Tinto's chairman, Jan du Plessis, noted that the company has made significant progress in refocusing and strengthening its business under the leadership of Sam Walsh and Chris Lynch. “The board believes that the continued successful execution of Rio Tinto’s strategy will allow Rio Tinto to increase free cash flow significantly in the near term and materially increase returns to shareholders," the chairman said.
Rio Tinto's shares were up 4 percent to $52.91 (AUD 60.07) in afternoon trading on the Australian Stock Exchange.
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Tags:
Chinalco, Deena Taylor, Glencore, merger, Rio Tinto
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