Turquoise Hill Resources (TRQ) has rejected a $2.7 billion U.S. takeover bid from Rio Tinto
Group (RIO).
Rio Tinto had been interested in Montreal-based Turquoise Hill because it wants to gain control
of a giant copper mine that Turquoise Hill is developing in Mongolia.
However, in a news release, Turquoise Hill said that Rio Tinto’s offer doesn’t “fairly reflect the
fundamental and long-term strategic value of the company’s majority ownership of the Oyu
Tolgoi project (in Mongolia).”
Rio Tinto already owns 51% of Turquoise Hill, which in turn holds a two-thirds share in Oyu
Tolgoi mine site, which is expected to produce copper and nickel.
Rio Tinto said in a written statement that it was disappointed by the decision and reiterated its
proposal to buy Turquoise Hill.
In March of this year, Rio Tinto offered $34 a share to Turquoise Hill’s minority shareholders, a
then 32% premium to the mining company’s share price.
Turquoise Hill’s stock is up 63% this year and trading at $33.54 per share amid a boom in
commodity prices.
