Chinalco’s Dawn Raid on Rio Tinto Shares – More than a Business Deal

Over the next few months, the Australian Financial Investment Review Board (FIRB) will have a tough job deciding whether it is in Australia’s best interest to approve Chinalco’s acquisition of more than 14.9% of Rio Tinto shares.  A crucial task for the Australian regulator is to determine whether or not this share acquisition is a genuine business decision.  So far no one is convinced that this Chinese Aluminium Group is just after some aluminium asset.  There is strong evidence to suggest that the bid is designed to influence the outcome of a possible BHP and Rio Tinto merger.