HomeBase MetalsRio Tinto notes scrapping of BHP Billiton takeover bid

Rio Tinto notes scrapping of BHP Billiton takeover bid

The pit at the Palabora
copper mine – a member
of the Rio Tinto group
London, England — MININGREVIEW.COM — 27 November 2008 – The Boards of Rio Tinto plc and Rio Tinto Limited – which together form the Rio Tinto group, the world’s third-largest mining company – have noted the announcement by BHP Billiton that it will not pursue its pre-conditional offers for the acquisition of Rio Tinto.

In making this announcement here, Rio Tinto confirmed that it would continue with its strategy of operating and developing large-scale, long-life, low-cost assets to generate significant value for shareholders. It pointed out that the group had an exceptional portfolio of cash-generative assets and significant stand-alone growth opportunities.

Earlier this week, BHP Billiton Limited – the world’s largest mining company – abandoned its more than year-long pursuit of the Rio Tinto Group, blaming the rout in commodities prices and the credit-market squeeze for the derailment of what could have been the world’s biggest hostile takeover.

It said BHP Billiton intended to write off the costs of approximately US$450 million (R4.7 billion) incurred in progressing this matter over the past eighteen months in its December 2008 half year results.

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc – a London and NYSE listed company – and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Rio Tinto’s business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.