Turquoise Hill Holders Endorse Rio Tinto $3.1 Billion Deal
Comment of the Day

December 10 2022

Commentary by Eoin Treacy

Turquoise Hill Holders Endorse Rio Tinto $3.1 Billion Deal

This article from Bloomberg may be of interest to subscribers. Here is a section:

Turquoise Hill Resources Ltd. shareholders endorsed a C$4.24 billion ($3.1 billion) takeover offer by Rio Tinto Group, paving the way for the London-based miner to gain control of one of the world’s largest copper mines.

About 60.5% of Turquoise Hill’s minority investors voted in favor of Rio’s C$43-a-share cash offer, the Canadian company said following a shareholders’ meeting in Montreal on Friday. The result clears the way for Rio Tinto to take over Turquoise Hill and gain majority ownership in its massive Oyu Tolgoi project in Mongolia, which is expected to become the world’s fourth-largest copper mine.

Shares of Turquoise Hill rose 0.9% to C$42.93 at 2:43 p.m. in Toronto. Rio shares closed almost 1% higher in London before the vote results were announced.

“This transaction will deliver significant benefits for all shareholders, and allow us to progress the Oyu Tolgoi project in partnership with the government of Mongolia with a simpler and more efficient governance and ownership structure,” Rio’s copper head Bold Baatar said in a statement.

Eoin Treacy's view

This acquisition is a testament to how rare new truly world-class copper mines are. The fact Mongolia is sandwiched between Russia and China is a handy geographical accident that means supply will be a buyer regardless of what else happens.

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