December 23rd, 2010 | Global Times Rio Tinto to ink $3.8b deal
Anglo-Australian miner Rio Tinto is finalizing a $3.8 billion takeover bid for Africa-focused Riversdale, according to two sources, upping an earlier offer as it seeks to gain key coking coal supplies.
A formal bid for Mozambique-based Riversdale Mining could spark a bidding war by drawing out other suitors wanting access to what is expected to be the world’s second-largest, coal-exporting market in coming years.
A group of state-run Indian firms has said it is looking at Riversdale, and other major mining companies are also interested, sources have said.
Rio Tinto was locked in talks with Australian-listed Riversdale’s board over a A$16 ($15.9)-per-share takeover offer, but a final deal has not yet been completed because of some last-minute wrangling over price, one source told Reuters.
Spokesmen for both Riversdale and Rio Tinto declined to comment.