BHP Billiton has dropped its hostile takeover bid for Rio Tinto as the global economic crisis takes its toll on the minerals market.
The controversial offer sparked concerns that a new joint entity would have too much control over commodity prices and monopolise the industry.
BHP chief executive, Marius Kloppers, says the offer is now off the table as it increases debt exposure to shareholder value to an “unacceptable level”.
Rio Tinto repeatedly rejected the offer for being too low and claims it “vastly undervalued” the Anglo-Australian group, whose major products include aluminium, copper, diamonds, gold and iron ore.
Rio Tinto said it would push on with creating "significant value" for shareholders after BHP walked away.
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