Australian competition regulator ACCC (Australian Competition and Consumer Commission) has announced that it will not oppose the bid of Chinese state-owned aluminum giant Chinalco to double its stake in Australian miner Rio Tinto from the existing 9.3 percent to 18 percent.
According to the ACCC, the deal is unlikely to result in a substantial lessening of competition.
Commenting on the Chinalco bid, ACCC chairman Mr. Graeme Samuel said, "Chinalco would be unlikely to be able to influence commodity prices for the benefit of Chinese steelmakers. To do that they would have to ignore the interests of the other 80 percent odd shareholders in Rio Tinto, which would not be countenanced."
The $30 billion proposal is still awaiting approval from Rio Tinto's shareholders and from Australia's Foreign Investment Review Board.
Meanwhile, speaking on March 26 at a mining conference in Singapore, Rio Tinto CFO Guy Elliott said, "We have plans in the eventuality that either the various governments or the shareholders prevent the deal going through. What I can assure you is we have a Plan B...in good preparation."