Rio Tinto (RIO) is taking another run at Canadian miner Turquoise Hill Resources (TRQ).
Rio Tinto has announced a new proposal to buy Turquoise Hill, offering $40 per share, which is
an 18% increase from a previous bid of $34 a share.
Rio Tinto’s previous acquisition offer was rejected by Turquoise Hill on August 15. At that time,
Turquoise Hill said the bid did not reflect the long-term strategic value of the company’s
ownership of the Oyu Tolgoi project, a large copper and gold deposit located in Mongolia.
Rio Tinto, the global mining giant that is headquartered in London, England, is keen to gain
control of the Oyu Tolgoi project in Mongolia.
Oyu Tolgoi is one of the world’s biggest copper and gold mines. Turquoise Hill, which is co-
headquartered in Montreal and Vancouver, owns a 66% stake in the mine. The other 34% is
state-owned by the Government of Mongolia.
In its own press release, Turquoise Hill acknowledged receipt of the new offer from Rio Tinto
and said a special committee will consider it.
Turquoise Hill’s stock rose 24% on news of the new acquisition proposal from Rio Tinto,
bringing its year-to-date gains to 81%. Turquoise Hill’s stock is now trading at $37.44 per share.
