'Rio wanted premium for Glencore deal'
Sydney
RIO Tinto Group shareholders would demand a premium of as much as 30 per cent in any deal with Glencore Plc, making a tie-up unlikely due to a lack of synergies, said Alberto Calderon, a former BHP Billiton Ltd. executive.
"The issue is mergers of mining companies generally don't have synergies," Mr Calderon, a board member of Orica Ltd, told channel 9's Financial Review on Oct 12. "The only way you have synergies is when you have overlapping operations like BHP and Rio had at the Pilbara. This is not the case here. I don't think Glencore could afford to pay that premium."
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Oil settles higher on supply concerns in the Mid-East, economic woes subdue gains
Seatrium unit to fully redeem S$500 million worth of floating-rate bonds early
Anglo rejects BHP takeover bid as significantly undervalued
India rice prices at three-month low on shrinking demand
Gold prices set for weekly decline ahead of US inflation data
Pricey coffee is here to stay as hoarding, heat hit Vietnam supply