On June 17, the Australian mining giant Rio Tinto announced that it will compulsorily acquire the Africa-focused Australian coal miner Riversdale Mining Limited (Riversdale) after Indian steelmaker Tata Steel announced that it will divest its entire 26.27 percent stake in Riversdale Mining Limited to Rio Tinto. The sales consideration for Tata Steel's stake is around AU$1.06 billion (US$1.115 billion).
Rio Tinto's offer for Riversdale, made through Rio Tinto Jersey Holdings 2010 Limited (RTJ), has received an overwhelming level of support from Riversdale shareholders. As of June 17, Rio Tinto has acquired 99.74 percent of all Riversdale shares, including Tata Steel's 26.28 percent stake.
Rio Tinto Energy chief executive Doug Ritchie said, "We have already started to integrate Rio Tinto's world-class operating and technical capability into the operations. We are determined to develop Riversdale's assets in a sustainable, mutually beneficial manner for the people of Mozambique."
RTJ now has a relevant interest in greater than 90 per cent of the issued capital of Riversdale and intends to compulsorily acquire the remaining shares in Riversdale. Rio Tinto stated earlier that it will seek to have Riversdale delisted from the Australian Securities Exchange (ASX) after the offer has ended. The offer is due to end at 7.00 pm on June 17.