On May 15, Australian miner Rio Tinto and China's state-owned aluminum giant Chinalco announced their receipt of foreign investment clearance from the US regulator for their planned $US19.5 billion deal for the increase of Chinalco's stake in Rio Tinto from the existing 9.3 percent to 18 percent.
According to a joint statement released by Rio and Chinalco, the Committee on Foreign Investment in the US (CFIUS) has granted clearance for the proposed issue of $US7.2 billion ($9.5 billion) worth of convertible bonds to Chinalco and an indirect minority investment in Kennecott Utah Copper.
The clearance from the US regulator satisfies a regulatory precondition of the deal in question and follows receipt of approval from the Australian and German competition regulators.
However, the most significant regulatory approval for the deal, that from Australia's Foreign Investment Review Board, is yet to be granted, with a decision from the Australian government due in mid-June.
In a separate statement, Rio Tinto said that it remained committed to delivering its alliance with Chinalco, but was seeking investor feedback on the deal.
In response to a query from the Australian Securities Exchange prompted by a sharp drop in its shares, Rio Tinto said that there had been media speculation about possible alternatives to the Chinalco deal.
"The company remains committed to this strategic partnership. The company continues to seek feedback from shareholders on this transaction and (will) otherwise carry on its business in the usual course," Rio Tinto said in its reply.