Diamonds

Save E-mail Print Most Popular RSS Reprints

BHP Billiton backs off bid for Rio Tinto

November 25, 2008

Similar Stories | Topics

London--The board of mining company BHP Billiton announced today that it is not moving forward with its acquisition of rival mining company Rio Tinto, according to a release on the company's Web site.

The company decided that the "completion of offers" for Rio Tinto is no longer in the best interest of its shareholders, the release states.

"We have said that we would only seek to complete the transaction if it was in the best interests of BHP Billiton's shareholders," Chairman Don Argus said. "While we have not changed our view of the basic industrial logic of the combination, or of the long-term prospects for natural resource demand growth driven by emerging economies, we have concerns about the continued deterioration of the near-term global economic conditions, the lack of any certainty as to the time it will take for conditions to improve and the risk that these issues imply for shareholder value."

BHP Billiton began bidding for Rio Tinto in November 2007, but was rebuffed by the Australian mining company along the way. BHP Billiton subsequently received clearance from both the U.S. Department of Justice and the Australian Competition and Consumer Commission for the deal.

However, the European Commission had required Rio Tinto to make divestments in iron ore and metallurgical coal to deal with anti-trust issues, divestments the company is not wiling to make in challenging economic times.

"In the normal range of economic conditions, BHP Billiton would have been prepared to offer remedies which we believe would have been both acceptable and manageable," the release states. "However, given the current economic circumstances and uncertainty regarding our ability to achieve fair divestment values in the required time frames, these remedies would contribute to the cost and risk of the transaction...BHP Billiton will not offer any remedies to the European Commission antitrust authorities, and BHP Billiton expects that without remedies, European Commission clearance will be withheld."
Save E-mail Print Most Popular RSS Reprints
Post a Comment
* Required field
* Author:
* Comment:
 

Diamonds

Industry calling for swift action on Zimbabwe

Jewelers of America is calling on the Kimberley Process to fully and quickly implement a work plan to address the serious concerns surrounding Zimbabwe's non-compliance with the Kimberley Process Certification Scheme, the system designed to keep conflict diamonds out of the international trade, and the reported human rights abuses in the Marange diamond fields. Read More

Sotheby's reports record-breaking sales in Geneva
Diamond symposium focuses on 'new normal'
More Diamonds

More Like This

Battle for Rio Tinto heats up
February 06, 2008 | National Jeweler Network
Rio Tinto rejects BHP Billiton bid
February 14, 2008 | National Jeweler Network
Forum ends with blast on Rap price list
March 04, 2008 | National Jeweler Network
Trade gives champagne diamonds warm reception
May 06, 2009 | National Jeweler Network
Rio Tinto anything but blue over tender results
April 28, 2009 | National Jeweler Network
TOPICS
EU Politics | European Politics | Politics | World Politics

advertisement

Video

Small multi video player located on right rail of NJN site

advertisement

Retailer Toolbar

America's Best Jewelers
Join the ONLY Social Network for Jewelry Retailers. Get access to expert content, peer best practices, and more.
Start networking today.
Newsletters
Newsletters
Topic-specific newsletters that deliver the latest news on jewelry, diamonds, wholesale operations and high-volume buying directly to your in-box.
Reader Connect
ReaderConnect
Supplier information presented with every article, bringing you related, actionable content on every topic.
Jewelry Yellow Pages
Yellow Pages
A comprehensive listing of associations, organizations, suppliers and services for the jewelry industry.
Classifieds
Classifieds
A comprehensive listing of job postings, product offerings and other materials for sale for the jewelry industry.
NJN Customer Connect
CustomerConnect
The most sophisticated suite of marketing services available for jewelry retailers, from Internet tools to data marketing.

advertisement