Aluminum confirmed Rio Tinto withdrawal inject 195 million U.S. dollars transactions separation costs

February 12, in the British capital London, the former general manager of Alcoa China Xiao-qing (left) and Rio Tinto chairman Paul Skinner in the agreement signing ceremony, shaking hands. Aluminum Company of China announced the establishment of Rio Tinto with the ground-breaking strategic alliance in the aluminum companies through the establishment of joint ventures and to subscribe for convertible bonds Rio Tinto to invest 19.5 billion U.S. dollars. Xinhua News Agency reporters Ma Jian and Guo She

Xinhuanet News: Aluminum concern - the case of Rio Tinto cooperation the two sides eventually come forward to confirm the transaction in order to end up breaking up. Confirmed in the aluminum companies, Rio Tinto Board of Directors has withdrawn 19.5 billion U.S. dollars on both sides of the recommended transactions, and aluminum in accordance with an agreement to pay 195 million U.S. dollars of the breakup fee. This means that Chinese companies so far the largest amount of overseas investment transaction was negatived.

February 12, 2009, China Aluminum Corporation and Rio Tinto signed a strategic cooperation agreement, Alcoa will be through the establishment of joint-venture company to subscribe for convertible bonds and Rio Tinto to invest 19.5 billion U.S. dollars. Of these, 12.3 billion U.S. dollars for Rio Tinto and the formation of iron, copper, aluminum assets of the joint venture level, including Rio Tinto best eight-core assets; in order to subscribe for 7.2 billion U.S. dollars of sub-issuance of convertible bonds. After the Convertible Notes, will make aluminum company, Rio Tinto shares in the proportion of the total from the current 9.3% to 18%.

Rio Tinto may be 15 billion U.S. dollars through the placement of shares

According to International Finance News reported, according to sources familiar with the transaction said that Rio Tinto plans to sell a stake of up to 15 billion U.S. dollars to raise funds to replace the aluminum with a total of 19.5 billion U.S. dollars of transactions. In addition to issuing new shares, the Rio Tinto Group may be adopted by the world's biggest mining group BHP Billiton to sell its Australian iron ore assets to further financing, but financing plan that Rio Tinto has not yet been approved by the Board of Directors.

Prior to this, 38.7 billion U.S. dollars due to the debt burden, Rio Tinto in February 2009 in the search for Chalco to help improve its balance sheet. Rio Tinto in aluminum and injection reached an agreement to pay Rio Tinto 12.3 billion U.S. dollars, the acquisition of the latter part of the core mining assets in equity and another 7.2 billion U.S. dollars investment, the acquisition of Rio Tinto's convertible bonds. After completion of the transaction, holders of Rio Tinto in aluminum up to 18% of the shares.

However, Rio Tinto investors dissatisfied with the transaction said that the deal will be home in the interests of aluminum in the interests of Rio Tinto shareholders. Some investors worried that the increase in the proportion of Rio Tinto's shares, the aluminum will have an impact on the pricing of iron ore. However, many times that of aluminum, does not affect the iron ore negotiations.

Rio Tinto BHP Billiton joint

Xinhua Canberra, June 5 power the world's largest mining companies BHP Billiton and the third-largest mining company Rio Tinto on the 5th on a joint venture between the two sides in the iron ore business in Western Australia to reach an agreement.

According to the statement issued by BHP Billiton and Rio Tinto joint venture will be 50 percent of the stake holders, BHP Billiton Rio Tinto will pay 5.8 billion U.S. dollars to obtain the above-mentioned options. It is reported that the merger synergies the two companies will save costs of at least 10 billion U.S. dollars.

Rio Tinto chairman Jan du Plessis said in a statement that the joint venture will create an unmatched iron ore business, its assets and infrastructure will be world-class. BHP Billiton chairman, said Andre, the two sides in the joint venture to open a world-class resources on the basis of the advantages of a new stage of cooperation.

BHP Billiton in February last year issued a convertible to the Rio Tinto offer, according to the then market value of about 147 billion U.S. dollars. But by the financial crisis, BHP Billiton in November last year decided to abandon this acquisition.

Backgrounder: China, Rio Tinto aluminum injection Events

2 February, 2009 Aluminum Corporation of China (601600.SH) Qing, deputy general manager of吕友said Chalco and Rio Tinto are possible areas for cooperation on negotiations, but did not disclose the contents of specific cooperation projects and the amount of amount. In the aluminum companies in 2008, although the performance drop due to aluminum, production and substantially reduced, it is reported that the acquisition of aluminum on the part of the assets of Rio Tinto deal with the National Development Bank to discuss financing options.

2009年2月10 Japan-China Rio Tinto aluminum of injection with aluminum, Rio Tinto reports of high-level turnover has been the industry's concern. Media reported that the acquisition of aluminum in the State Department and under the direct supervision of SASAC, and may be more inclined to acquire the assets related to the core; and, if successful, funding will be required in aluminum four major state-owned banks for financing, a, instead of the National Development Bank.

February 12, 2009, China Aluminum Corporation and Rio Tinto, through the London Stock Exchange and Australian Stock Exchange issued a joint notice in the aluminum companies and Rio Tinto signed a strategic cooperation agreement, overseas investment hit a record high of. In the aluminum companies and the Rio Tinto Group to invest a total of 19.5 billion U.S. dollars, of which about 7.2 billion U.S. dollars for Rio Tinto Group to subscribe for convertible bonds issued, bonds carry a coupon of 9% margin. In the aluminum companies in the period Convertible choose Convertible at any time. Convertible, the Aluminum Company of Rio Tinto in the proportion of the overall shareholding from the current 9.3% to about 18%, of which Rio Tinto holds shares in UK companies increased 19% Australian company Rio Tinto holds a 14.9 percent stake. The successful completion of the transaction is still in need of Rio Tinto shareholders and China, Australia, Canada, the United States and other countries regulatory approval.

February 2009 16 Japan-China Rio Tinto aluminum and the "marriage" Add variable. According to foreign media reports, some institutional investors in Rio Tinto BHP Billiton to shake from the "olive branch", said that if BHP Billiton launched a new round of the acquisition of Rio Tinto, they will provide financing. British media quoted saying the major shareholder of Rio Tinto said BHP Billiton to acquire Rio Tinto assets, the acquisition of better than aluminum.

March 2009 17 Japan-China Aluminum inject 19.5 billion U.S. dollars of transactions Rio Tinto renewable waves. Australia's Foreign Investment Review Board (hereinafter referred to FIRB) 16 on the Australian Stock Exchange announced it would extend to the Rio Tinto in aluminum and 19.5 billion U.S. dollars of processing time for transactions in the scheduled 30-day review period, based on an additional 90 days .

March 26, 2009, in the Chinese enterprises to invest in Australia postponed repeatedly subjected to review, the Australian side finally came the news. Australian Competition and Consumer Commission (ACCC) made it clear that China would not object to injection of Alcoa Rio Tinto deal, because the deal will not lower the global price of iron ore. Al went on to say that in context, ACCC means the announcement of the transaction towards the examination and approval by all relevant laws and taken an important step forward, and welcomed the ACCC's decision.

March 27, 2009, spokesman for the Bank of China disclosed王兆文, the Bank of China and other four domestic banks will be based on market-oriented commercial lending operation conditions in the aluminum companies to provide about 21 billion U.S. dollars of the loan amount to cover in Aluminum Company of Rio Tinto's investment on the price and the other on the demand for investment funds.

March 29, 2009 Chalco results published in 2008, the company's total profit in 2008 fell 99.17 percent, only 9.23 million yuan net profit fell 99.91 percent year-on-year by the Hong Kong media as "the worst blue-chip H shares." Aluminum high-rise that does not affect the acquisition of Rio Tinto. At the same time, the performance of aluminum in the published report, Xiao-Qing on the 27th of this month resigned from the chairman post, and effective immediately, the post by XIONG Wei-ping over.

April 2, 2009 release of the German government injection of Rio Tinto aluminum, which is the second in Australia after the antitrust approval, the transaction was the second recognition of the authoritative departments. The need for approval by the national governments at various levels in the Rio Tinto Aluminum transaction has a "Long March through a small semi." Aluminum injection of Rio Tinto, the need for access to China's Anti-Monopoly Service, the Australian Foreign Investment Assessment Board (FIRB), the Australian Competition and Consumer Commission (ACCC), the U.S. Committee on Foreign Investments (CFIUS), as well as competition in the German Federal Cartel Office the authority of a total of five accredited institutions.

May 15, 2009 Aluminum Company of China and Rio Tinto announced that foreign investment has been the United States Commission ( "CFIUS") of Rio Tinto intends to issue convertible bonds in the aluminum and the aluminum of Kennecott Utah Copper Corporation ( "KUCC") to carry out an indirect minority interest in the approval of investment transactions. Aluminum and Rio Tinto jointly submitted a voluntary CFIUS on the relevant notice of the transaction under review. CFIUS approval to satisfy the regulatory aspects of the transaction as a prerequisite.

June 5, 2009 Aluminum Company of China confirmed that Rio Tinto has been the lifting of the Board of Directors February 12, 2009 announced their strategic cooperation in the recommendation of the transaction, and based on the two sides signed agreements of cooperation and the implementation of aluminum to pay breaking up 195 million U.S. dollars of the fee.