In the most important mining takeover yet this year, Rio Tinto is set to acquire Australia’s Riversdale which has mines in Mozambique and other projects in southern Africa.
As Mines and Communities pointed out last December: “Rio Tinto’s initial US$3.5 billion offer for Riversdale is likely to be increased. But the UK-Australian company could yet be out-matched by other bidders; or Rio may bed down with a partner”.
And the bid was indeed increased – to US$3.9 billion – and Tata Steel’s representative on Riversdale’s board voted in its favour. The Indian steel conglomerate is now likely to forge an agreement with Rio Tinto, to secure enhanced supplies of its own.
As MAC also said five weeks back: “If a deal eventuates, it would doubtless rank as one of the most significant of its kind since the 2008-2009 credit collapse – and certainly in Africa”.