Rio Tinto may overtake Tata Steel as Riversdale's largest shareholder
06 Dec 2010
Rio Tinto, the world's third-largest mining company, is in talks to buy Australia-based but Africa focused coal miner Riversdale Mining, in which Tata Steel is its largest shareholder, for $3.2 billion.
Citing unnamed sources, the UK's Daily Telegraph, yesterday reported that the Anglo Australian mining giant Rio Tinto is in talks to buy Sydney-based Riversdale for around A$15 a share. Riversdale shares closed at A$14.10 on 3 December.
The paper said that a deal was not certain to be completed between the two companies, and at least one other unnamed suitor has also been talking to Riversdale.
Tata Steel's Singapore-based subsidiary Tata Steel Global Minerals Holdings, holds a 24.21-per cent stake and a seat on the board of Mozambique and South Africa focused Riversdale.
Other stake holders in the miner are Brazilian steelmaker Companhia Siderurgica Nacional (CSN) with 16.29 per cent, China's Wuhan Iron and Steel (Wisco) owns 8 per cent and financial firms like Merrill Lynch, Passport Capital and the Talbot Group have smaller stakes.
India's biggest iron-ore producer, National Mineral Development Corporation (NMDC) was seeking in September to buy a 10 per cent stake in Riversdale.