A few months have passed since we last discussed BHP Billiton’s bid for Rio Tinto, but BHP hasn’t lost interest in their rival. As the mining giant announced their annual net income this Monday, a record $15.4 billion, they “urged investors to be patient on the Rio takeover,” according to the New York Times. When BHP announced this 14.7 percent rise last Monday, proving that the company has continued to boost their attributable profit delivered, BHP’s chief executive said the deal was on schedule and “made more sense than ever.”
Rio must not have received the memo, since the mega-mining company continues to spurn BHP’s offer, considering $127 billion far too low — despite analyst predictions that rising costs will cut into Rio’s first-half earnings. Rio should announce their first-half earnings on August 26. Despite BHP’s record annual net income, the past week saw BHP fall $1.60 to $37 and Rio lose $4.37 to $111.33, notes the Herald Sun.
As we reported earlier this year, Alcoa and the Aluminum Corp. of China grabbed a 9 percent stake in Rio a few months back, hoping to take part in the potential merger. But the possibility of such a large merger is overwhelming to many consumers and metals buyers.
“The European anti-trust regulator is set to rule on the takeover bid in December, while it’s Australian counterpart has requested more information from BHP before it makes a ruling,” the New York Times explains. “If the takeover is successful, it would be the world’s second largest after mobile phone giant Vodafone’s purchase of Mannesmann in 2000.”