Chinalco（Aluminum Corporation of China）made the first public response to its failed US$19.5 billion deal with Rio Tinto yesterday, saying the deal was a setback on its road to globalization.
"The collapse of the Rio Tinto deal is a setback on Chinalco's road to going global," said Xiong Weiping, president of the Chinese aluminum maker at a press conference yesterday.
"We are very disappointed at Rio Tinto's board decision to withdraw its recommendation of an already-agreed deal and walk away with another plan," Xiong said.
Rio Tinto had decided against Chinalco's proposed deal when its board offered the share allotment plan, the president revealed.
Xiong deemed the failed deal also a loss for Rio Tinto, saying that if succeeded, the deal would have "helped promote Rio Tinto's market image and generate more profits for all its shareholders."
He denied political factor is the reason behind the failed deal, saying the Australian government is open to overseas investment including Chinese investment and he hoped to maintain good relations with the Australian government and relevant regulatory bodies.
Xiong attributed the failure to constantly-changing shareholder requests, Rio Tinto's share allotment and its joint venture with BHP Billiton as well as the fluctuating markets.
Despite the failure, Chinalco will remain unchanged on its strategic goal to develop into a global multi-metal mining company, Xiong said.
Chinalco has gained a lot from the Rio-Tinto deal, said Xiong. The company has built a good corporate image in the global market and strengthened exchange and cooperation with global mining companies and Chinese financial institutions.
As the largest single shareholder in Rio Tinto, Chinalco will closely follow Rio Tinto's strategies and operations, including its share allotment and its joint venture with BHP Billiton.
Chinese story links: http://finance.sina.com.cn/china/hgjj/20090611/16256336772.shtml http://finance.sina.com.cn/china/hgjj/20090611/17016336930.shtml
(China.org.cn June 12, 2009)
