Brazil : BHP could return for Rio bid.Byline: manish03 RIO Tinto Group Rio Tinto is a multinational mining and resources group founded originally in 1873. The group is one of the world's largest mining companies, with a pre-tax profit of approximately 10.2 billion US dollars in 2006 on consolidated turnover of 25.4 billion USD. still makes the "most sense" as a takeover target Takeover target A company that is the object of a takeover attempt, friendly or hostile. takeover target See target company. for the world's largest mining company, BHP Billiton BHP Billiton is the world's largest mining company.[1] Its origin is in the 2001 merger of Australia's Broken Hill Proprietary Company (BHP) and the UK's Billiton, which has a South African background. The result is a dual-listed company. , 11 months after BHP BHP blood hydrostatic pressure; the pressure exerted by the blood cells and plasma in the capillaries. abandoned a bid, Citigroup says. "Rio is still the deal that makes most sense for BHP Billiton given the synergies, asset quality and growth options," Citigroup analysts led by London-based Johan Rode wrote in a note on Friday. "If BHP Billiton harbours any desire of such a move, then it would be unlikely to do a major M&A transaction that would constrain such a move." BHP may make another offer for Rio should both companies fail to reach an agreement on a proposed iron ore joint venture, Citigroup said. However, Rio shareholders may reject the venture because the company doesn't need the proceeds after selling shares in July and selling some assets, Citigroup said. BHP dropped its Rio bid, which would have been the world's largest mining takeover, last November amid the global financial crisis and plunging metal prices. Rio, which rejected the approach, subsequently proposed an investment from its largest investor, Aluminum Corp of China (Chinalco), before scrapping that plan in June in favour of a rights offer and the iron ore venture. As with the Rio bid, the "key " regulatory approval will be from the European Commission European Commission, branch of the governing body of the European Union (EU) invested with executive and some legislative powers. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the European Community , Citigroup said. Rio and BHP are the world's second and third-largest iron ore producers. Rio's share sale helped reduce the $US38.9 billion of debt accumulated from its purchase of aluminum producer Alcan in 2007. Consequently, BHP may not need "substantial" debt facilities for another bid, Citigroup said. The Australian mining company previously had $50 billion of facilities in place to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. the Alcan debt, Citigroup said. Copyright : Euclid Infotech Pvt. Ltd. Provided by Syndigate.info an Albawaba.com company |
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