High-cost squeeze out of Wuhan Iron and Steel Rio Tinto won two large coking coal projects in South Africa

In the early morning of April 7, Rio Tinto Group announced that it currently holds 49.53% of the shares held by Australia's Riversdale Mining Co., which specializes in Mozambican business, which exceeds the company’s previously determined 47% holding target and plans to purchase the remaining shares as planned. Increase to A$ 16.5 per share. "We have increased the bid price after reaching the set shareholding target, while extending the deadline."

"The price of $10 per share is already a very reasonable price, but now that there are new changes, we can only focus on the latest developments," said Bai Fang, director of propaganda department of Wuhan Iron and Steel Group.

At present, Rio Tinto still insists on a total of AUD 3.9 billion (approximately US$ 4 billion) acquisition plan. The above offer was extended to April 20, which is the fifth extension since December last year.

“We reached the previously established 47% holding target on the evening of the 6th. This is just an announcement of the latest progress in this acquisition. It is not the final result. If there is any latest news, we will promptly inform.” Yesterday, Tuo told reporters.

According to reports, if Rio Tinto reached at least 47% of its holdings before April 6, it will increase the offer to A$16.50 per share, otherwise it will maintain its previous offer of A$16 per share.

Public information shows that according to the acquisition plan, Rio Tinto Group's previously defined holding objective is at least 50%. However, two major shareholders of Riversdale Mining Brazil CSN Steel and India Tata Steel respectively refused to sell their shares, and Rio Tinto Group was forced to amend the plan. It is reported that CSN Steel and Tata Steel's shareholding in Riversdale Mining is 19.9% ​​and 27%, respectively.

Today, Rio Tinto hopes to acquire more than 47% of Riversdale shares by the end of the day, which also allows Rio Tinto's shareholding ratio to exceed the sum of the shares of the second and third largest shareholders in one move, thus completing the actual effective holding of the acquisition target.

There are unnamed industry sources that the hope of Wuhan Iron and Steel Group to continue to participate in the bid is already very embarrassing. In the face of Rio Tinto’s bidding situation, it is difficult for Wuhan Iron and Steel to give a higher purchase price, and it is very likely to go out.

Yesterday, during the period of the Wuhan Iron and Steel Group, whether it had exchanged or contacted with Rio Tinto Group. White Fang, the director of propaganda department of Wuhan Iron and Steel Group, stated that “because after the communication, the relevant authorities were not contacted”, the matter was unclear. At the same time, the WISCO Group will not give up the bid in the end, and White has not given a clear reply. However, he told reporters, "Since there have been new changes, we can only focus on the latest developments."

The reporter learned from the Wuhan Iron and Steel Group that the Wuhan Iron and Steel Group had previously conducted a due diligence on the transaction. “The negotiations between the two sides are sincere and the agreement has only been approved by the Chinese government.