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皇冠体育applco deal gets initial nod

By Jiang Wei (皇冠体育app Daily)
Updated: 2009-03-26 07:48

Aluminum Corp of 皇冠体育app (皇冠体育applco) yesterday got an initial go-ahead from the Australian government for its $19.5-billion investment into the Rio Tinto Group.

Related readings:  Australia competition body won't block Rio-皇冠体育applco  Australia delays call on 皇冠体育applco-Rio deal  No changes to Rio Tinto deal: new 皇冠体育applco chief  Rio Tinto shareholders wary of 皇冠体育applco deal

The Australian Competition and Consumer Commission said in a statement on its website that it does not oppose the proposed acquisition by 皇冠体育applco in Rio Tinto.

"It would be unlikely to result in a substantial lessening of competition," it said.

The commission said the stake buy was not likely to affect the iron ore, copper, aluminum and bauxite markets as "there was limited direct competitive overlap of the operations of Rio Tinto and 皇冠体育applco".

皇冠体育applco proposed last month to invest $12.3 billion to buy stakes in Rio Tinto's mines, including iron ore, bauxite, aluminum and copper projects, and another $7.2 billion to buy its convertible bonds.

The proposal has to be approved by other Australian government agencies and Rio Tinto shareholders as well.

皇冠体育applco welcomed the commission's decision, saying it "looked forward to moving ahead with the transaction".

Australia's Foreign Investment Review Board, which is also reviewing the proposed deal, decided last week to extend its investigation into the planned acquisition by 90 days. It will provide a recommendation to Treasurer Wayne Swan, who will make a final decision on whether the deal is in Australia's national interest.