BHP Billiton's plans to buy Rio Tinto were thrown into chaos today after Chinese metals and mining group Chinalco and Alcoa teamed up to buy a 12 percent stake in the Anglo-Australian company.
Shining Prospect - a Singapore-based entity wholly-owned by Chinalco – announced it has acquired 12% of Rio Tinto's existing share capital.
The company confirmed that together with Alcoa it does not plan to make an offer for Rio Tinto, even though they reserve the right to do so within the next six months.
"Our acquisition of a significant strategic stake in Rio Tinto today reflects our confidence in the long-term prospects for the rapidly evolving global mining sector," says Chinalco President Xiao Yaqing.
BHP has been set a 6 February deadline by the UK Takeover Panel to make a firm offer for Rio or walk away for at least six months after its bid to buy Rio was rejected in November last year.
Rio Tinto shares jumped nine percent to £54.20 in early London trading today, while BHP was 7.7 percent higher at £15.91, writes the UK's Financial Times.
By staff writer
