Home / Business / Business Highlights Tools: Save | Print | E-mail | Most Read | Comment
Chinalco describes FMG acquisition rumour as 'groundless'
Adjust font size:

Only one month since Valin Steel in central China's Hunan Province announced its deal with Fortesue Metals Group (FMG), Australia's 3rd largest iron ore vendor, rumours are spreading on the market that Chinalco has been in contact with FMG about a potential M&A deal.

Chinalco's vice president Lv Youqing however described the rumour as "groundless" in a clarification to China Business News.

The arrangement between Valin and FMG was concluded on April 29. Little more than a month later, on June 5, Rio Tinto tore up the US$19.5 billion framework deal with Chinalco and switched its strategic goal to launching a JV with BHP Billiton. Rio Tinto is looking to collect as much as US$15.2 billion through issuing lettings.

The rumour has broken at a time when Chinalco still faces the dilemma of whether or not to subscribe to shares in the Rio/BHP JV. On the other hand, Valin's negotiations with FMG, along with the Rio Tinto–BHP alliance, have both helped to boost FMG's stock price, which has risen by more than 50 percent since June 5, when Chinalco lost the deal with Rio Tinto.

For more information, please consult the coverage in Chinese at:


(China.org.cn by Maverick Chen, June 22, 2009)

Tools: Save | Print | E-mail | Most Read Bookmark and Share
Pet Name
China Archives
Related >>
- Chinalco registers for Rio Tinto rights issue
- Chinalco: 'very disappointed' at Rio Tinto's decision
- Rio Tinto scraps marriage with Chinalco
- Chinalco confirms deal breakup with Rio Tinto
- Chinalco bid to invest in Rio Tinto heads for trouble
- Germany approves Chinalco-Rio Tinto deal
- Four Chinese banks to fund Chinalco's bid for Rio Tinto
- ACCC approves Chinalco's stake in Rio Tinto
June 7 Tokyo 2nd China-Japan High-Level Economic Dialogu

June 30 Shanghai 2009 Automotive Engine Technology Seminar

July 3-4 Beijing Global Think Tank Summit
- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?