Australia's Foreign Investment Review Board (FIRB) said yesterday it was extending its probe into China Minmetals' AUD2.6 billion (US$1.7 billion) bid for OZ Minerals, by as long as 90 days.
OZ Minerals announced on February 16 that China Minmetals had offered AUD 2.6 billion to take over the company. The company, whose shares were suspended on November 28, has been heavily in debt since the second half of 2008.
OZ Minerals revealed in an email that the probe of its deal with China Minmetals would start from March 24. It said it understood the complexity of the review process and would continue to cooperate with the relevant supervision departments. The company is making efforts to extend an AUD1.2 billion debt to September 15 so as to preserve liquidity.
But the company also warned if the deal was not approved, it could face bankruptcy. The company said it would continue negotiations with its creditors.
Since March, FIRB has prolonged its reviews into four proposed mergers involving Chinese enterprises: Chinalco's investment in Rio Tinto; China Minmetals' acquisition of OZ Minerals; China Valin purchase of Fortescue Metals shares, and Ansteel's investment in Gindalbie Metals. The total capital involved exceeds US$22 billion.
For more details, please read the full Chinese coverage at:
http://www.dfdaily.com/node2/node27/node120/userobject1ai159944.shtml
(China.org.cn March 24, 2009)
