Free Preview of Members-Only Content
To view the requested intelligence, you must be a Stratfor.com member.
On April 9, the same day that Australia’s Prime Minister Kevin Rudd is due to arrive in Beijing, The Australian reported that rumors have emerged that China is about to buy a large stake in Australia’s BHP Billiton — the world’s largest mining company — in order to thwart its bid to swallow up London-based mining conglomerate Rio Tinto Group and create a $350 billion mining goliath. Shortly thereafter, Reuters reported rumors circulating on trading floors that Baoshan Iron and Steel Co. (BISC) — China’s biggest steel maker — is the potential buyer.
This is the latest twist to a saga that started Feb. 5, when BHP Billiton launched its $147 billion takeover bid for Rio Tinto, days after Aluminum Corp. of China (Chinalco) snapped up a 9 percent stake in Rio Tinto in a joint deal with U.S.-based Alcoa. Rio rejected BHP’s offer, and subsequent rumors of Chinalco’s intentions to expand its holdings in Rio have since politicized Chinese investment in Australian iron ore.
| Stratfor Members, please log in at the top left hand corner |
