Canada’s Turquoise Hill Resources (TSX, NYSE: TRQ) has rejected majority shareholder Rio Tinto’s (ASX: RIO) bid to buy the 49% stake it doesn’t already own in the company for $2.7 billion, saying it did not reflect its full and fair value.
The decision by the special committee appointed by Turquoise Hill blocks Rio Tinto’s efforts to gain greater control of the giant Oyu Tolgoi copper-gold mine it’s developing in Mongolia.
It is also a setback to Rio’s plans to increase its exposure to so-called future facing commodities such as copper and nickel, which are key for the global green energy transition. Taking a big stake in the Oyu Tolgoi mine, Rio Tinto’s main copper growth project, would have helped the mining giant to achieve that goal.
“Market conditions in the equity and copper markets have changed significantly since the receipt of Rio Tinto’s privatization proposal,” Maryse Saint-Laurent, chair of the special committee, said in the statement. “At the same time, the company has continued to make positive progress on the underground project.”
For the rest of this article: https://www.mining.com/turquoise-hill-rejects-rio-tintos-2-7-billion-takeover-offer/