Commodity Online
BEIJING: Chinalco expressed regret at the termination by Rio Tinto of a deal involving buyihg $7.2 bn in Rio’s convertibles bonds and inject a further $12.3 bn for stakes in a number of assets, including Rio’s Western Australia iron ore operations.

Mr Xiong, President of Chinalco commented: “It is with great regret that we are confirming the announcement made by Rio Tinto thismorning concerning the withdrawal of the Rio Tinto boards’ recommendation of the transaction announced on February 12. In recent weeks Chinalco has worked hard to respond constructively and engage with Rio Tinto to make appropriate amendments to the transaction terms announced in February to better reflect the changed market background and feedback fromshareholders and regulators. As a result, we are very disappointed with this outcome. We continue to believe our proposal presented an outstanding value‐creating opportunity for all Rio Tinto shareholders and would have provided a strong platform for a long term strategic partnership between the two companies.”
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Rio Tinto will have to pay a break fee of $195 mn to Chinalco for terminating the Februarydeal. Chinalco is the single largest share holder in Rio Tinto with its shareholding close to 10%.

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