RUMOURS that Rio Tinto is being encouraged to merge its Pilbara operations with BHP Billiton to reduce debt have been laid to rest.
Rio says the company would release an official statement if a merger agreement was to go ahead.
“At this time Rio Tinto refuses to make any comment on the matter except to say that it is hype that has been blown out of proportion,” a spokesperson said.
The furore started after analysts at Goldman Sachs called on the miner to form a 50-50 joint venture with BHP.
Analysts say combining the iron ore assets in the Pilbara would be a strategic move which would benefit both mines and add value to both companies.
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