Alcoa, Chinalco 12% interest in Rio Tinto seen as savvy move for both stakeholders

February 01st, 2008 | Category: Commodities

Alcoa and Aluminum Corp. of China, known as Chinalco, have jointly acquired a 12% stake in Rio Tinto, Alcoa announced Friday, in a statement.

The deal is estimated to be worth $14.05 billion, and represents the largest abroad investment by a Chinese company, Chinalco said. Alcoa Inc. (NYSE: AA) said it would contribute $1.2 billion to the investment.

Alcoa’s shares closed Friday up $1.19 to $34.15 on the news, as did Rio Tinto plc (ADR) (NYSE: RTP), which

closed up $34.05 to $441.00.

Alcoa and Chinalco’s stake could very well obstruct a tender from Anglo-Australian mining giant BHP Billiton for Rio Tinto, the Associated Press reported. BHP Billiton Limited (ADR) (NYSE: BHP) closed up $6.15 to $73.73.

Continue reading Alcoa, Chinalco 12% interest in Rio Tinto seen as savvy move for both stakeholders

Original post by Joseph Lazzaro

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