Rio Tinto has confirmed that the $19.5 billion Chinalco investment is off and that it will instead raise $15.2 billion through a rights issue (see “Chinalco’s Rio Deal On Verge Of Collapse“). Chinalco’s president Xiong Weiping said in a brief statement that the company is “very disappointed”. It is not clear what Chinalco’s next steps will be to secure raw material supplies around the world, or whether the rebuff to what would have been the largest Chinese foreign investment will deter other Chinese enterprise from investing overseas. “Chinalco will continue to explore opportunities to advance its strategic objectives and in the meantime will monitor developments at Rio Tinto as the company’s current largest single shareholder,” Xiong said in his statement. Which isn’t saying much at all.
Tag Archives: Xiong Weiping
Chinalco’s president, Xiao Yaqing, is moving on at what would seem to be a critical time for the company with its $19.5 billion capital injection into Anglo-Australian miner Rio Tinto now starting to do the rounds of regulatory approvals. But having announced the proposed deal in London earlier this month, Xiao is now not just moving on, but up, to a position with the State Council, Caijing magazine reports. Xiong Weiping, who was president of Chinalco’s Hong Kong subsidiary before moving in 2006 to be general manager of China Travel Service in the territory, is tipped to replace Xiao at Chinalco.