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Rio Tinto accepts Chinalco offer to clear debt

  •  12 February 2009
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Rio Tinto accepts Chinalco offer to clear debt

THE PUBLIC was poised for the mining giant’s decision of whether to accept Chinalco’s offer to increase its stake in the company amid the current economic uncertainty.

Rio Tinto accepted the offer from China’s state-owned aluminium miner on 12 February 2009.

Under the deal, Chinalco will double its stake in Rio to 18% from the 9% it bought with US aluminium giant Alcoa in 2008.

The plan is likely to face close scrutiny from the Australian government, which in 2008 said Chinalco would need prior approval if it wanted to significantly raise its stake in Rio Tinto.

The agreement with Chinalco had been widely expected after Rio's chairman-designate, Jim Leng, quit the mining group.

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