Chinalco blames Rio for deal collapse

Chinalco blames Rio for deal collapse

business.theage.com.au

THE biggest investment deal in both Australian and Chinese corporate histories has collapsed, with Rio Tinto expected overnight to withdraw its board support for a $US19.5 billion investment from Chinalco.
The shock end to the controversial deal will spare the Rudd Government the political and diplomatic headache of whether to accept or block the deal on national interest grounds.
But it will spark a major spat between the Anglo-Australian miner and the Chinese aluminium giant, with Chinalco demanding that Rio pay a $US195 million break fee.

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Related News Links:
"Rio scraps Chinalco deal: reports", www.abc.net.au
"Rio Tinto walks away from Chinalco deal", www.news.com.au
"$24.4bn Chinalco deal with Rio Tinto is dead", www.theaustralian.news.com.au
"Chinalco deal no longer a must as BHP goes to Rio", business.theage.com.au
"Don't fear Chinalco deal, China urges", money.ninemsn.com.au

[edit on 4/6/2009 by nrky]

[edit on 4/6/2009 by nrky]

Could this eventually lead to events that could trigger a war with China, due to their need to expand and secure raw materials? China is growing, and it wouldn't surprise me if they eventually resort to military force to get the resources they need to become the world's biggest superpower.
To be honest, I'm on the fence about this one. If China is desperate enough for resources, they'll take them, possibly through military force, but more likely through trade restrictions and embargoes, or through reduction in temporary migration to Australia (which boosts our economy significantly). If PRC decides to deny their citizens access to Australian Universities, and force them to go locally instead, it will have a massive impact on the Australian economy.

business.theage.com.au
(visit the link for the full news article)