logo
Plus   Neg
Share
Email

Rio Tinto Seeking To Offload Canadian Iron Ore Biz

Rio Tinto PLC (RIO) is reportedly seeking to divest its Canadian iron-ore business for a possible consideration worth $6 billion.

According to Sky News, the Anglo-Australian mining giant has begun courting potential bidders for its $6 billion Canadian iron-ore? operations as it seeks to take advantage of a rebound in the commodity's value.

The report says Rio Tinto has hired investment bank Credit Suisse to conduct an auction of its majority stake in Iron Ore Company of Canada (IOC).

Rio Tinto, which owns 58.7% of IOC, has been already approached by ArcelorMittal and Teck Resources.

Rio is also said to be considering an initial public offering on the Toronto Stock Exchange of IOC, on which Royal Bank of Canada has been hired to advise.

Reports says that the $6bn price is "high but not inconceivable" as iron ore prices have rebounded and reached their highest level since February. Iron ore is now trading around $68 per ton.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
McDonald's Corp. has announced the return of its popular Shamrock Shake milkshake for a limited time at participating U.S. restaurants nationwide. The minty green milkshake is made with McDonald's vanilla soft serve blended with Shamrock Shake syrup and topped with whipped topping. It first debuted on the McDonald's menu in 1970 and has been a seasonal tradition for nearly 50 years. Asia-focused lender HSBC, through its blockchain-powered platform, has reduced the cost of settling foreign exchange trades by 25 percent, Reuters reported quoting a bank executive overseeing the project. Mark Williamson, chief operating officer of FX cash trading and risk management, told that the bank processes between 3,500 and 5,000 trades a day on its "FX Everywhere" system. PepsiCo, Inc. (PEP) reported fourth-quarter core EPS of $1.49 compared to $1.31, prior year. Excluding the impact of foreign exchange translation, core constant currency EPS increased 17 percent year-over-year. On average, 19 analysts polled by Thomson Reuters expected the company to report profit per...
Follow RTT