Behind China's biggest overseas merger

"Except Chinalco, it's all a winner." Rio Tinto's sole aim is to exchange cash for trading, and why should it work with Chinalco?　　(reporter Jiangyaping) "In addition to Chinalco, are winners", "Beijing Goodbye, BHP Billiton hello, 1 June 6 morning, the Australian newspaper on the suspension of Rio Tinto and the Sino-aluminum cooperation in the big story, and the two titles represent most of the Australian media position, they welcomed the decision of Rio Tinto."　　The previous day, Rio Tinto announced that the group's board of Directors has withdrawn the February 12 announcement of the Chinalco capital injection of Rio Tinto's strategic cooperation deal, and will be based on the cooperation and implementation of the agreement signed by the Sino-Aluminum Company to pay the 195 million-dollar break-up fee.　　Meanwhile, Rio Tinto has signed a non-binding agreement with BHP Billiton, the Australian miner, for a joint venture with the Western Australian iron ore production project. Rio Tinto "not bad money" this February, Chinalco and Rio Tinto reached a 19.5 billion dollar investment agreement, Chinalco to buy Rio Tinto $7.2 billion convertible bonds, so Chinalco's stake in Rio Tinto from about 9% to 18%.　　Chinalco has also agreed to invest 12.3 billion of billions of dollars in a stake in Rio's core mining assets and will get two seats on the Rio Tinto board. As soon as the agreement ink was dry, Rio Tinto openly tore up the contract and broke up with Chinalco at the expense of a huge break-up fee.　　Australian analysts say this has something to do with the improvement in Australia's overall economic situation. Australian Treasury Secretary Swan announced June 3 that the Australian economy grew at 0.4% in the first quarter of this year, and that while many developed countries were in negative growth, Australia remained positive, indicating that the country had successfully avoided the recession. This is a strong needle for the whole Australian economy and business.　　Banks that had easily been reluctant to lend to companies at the start of the financial crisis are now daring to lend, providing much-needed funding for companies like Rio Tinto.　　When Rio Tinto decided in February this year to cooperate with Chinalco and sell its stake to Chinalco at a low price, the company was saddled with $38.7 billion trillion in debt, 8.9 billion of which would expire in October this year. Rio Tinto's shares rose almost one-fold in the months after the decision to co-operate with Chinalco, and Rio Tinto's financial position improved considerably.　　It can be said that Rio Tinto's most difficult moment has passed, and the financial pressure is significantly less than six months ago. "The financial markets have improved markedly. The following two effects have been created: first, the value of the terms of the Chinalco deal has been significantly reduced, and second, it has made us eligible to offer more attractive terms for our interests. "In the face of the industry's" ladder "accusations, Rio Tinto board chairman Dulishiru is defending," at the same time, we have the opportunity to contact with BHP Billiton to discuss the possibility of establishing a joint venture in Western Australia, the joint venture will bring substantial value to our shareholders. " "Some analysts say Rio's sole aim is to trade cash for short-term debt problems, now that the pressure is reduced and there are more options whyAluminum to cooperate?　　Australian Prime Minister Kevin Rudd met with representatives of Chinalco on the day the Australian government was anxious to "placate China", and he repeatedly said the deal was "commercial" and irrelevant to the government.　　Agence France-Presse believes that this is Australia in "appease" China. However, there are still many voices contrary to the attitude of the Australian Government. In fact, many in the Canberra Parliament have injected Chinalco into Rio to raise the political level of damage to Australia's national interests.　　Chinalco's injection into Rio Tinto has, in a sense, been politicized by Australian media and politicians. In recent days, some Australian politicians and the media have been bitter about Chinalco's stake in Rio Tinto, claiming it was a major move by China's big state-owned companies to master Australia's strategic resources and expressed strong opposition.　　Although the Australian government says it is a business act, it has nothing to do with the government, but people can still see some of the "protection of national interests" under the banner of the force behind the scenes of lobbying.　　As one local analyst said, the failure of Chinalco to inject the Rio Tinto deal was the result of a market game rather than a victim of a new form of "Cold War" thinking. The winner of the Rio Tinto breach, the Australian government from a dilemma freed.　　' We still need your money, ' Mr. Rudd said during a meeting with Chinalco, according to Australian media reports. BHP is the happiest of all: It is BHP's wish to block Chinalco's stake in Rio Tinto. BHP Billiton is expected to inject 5.8 billion of dollars into a joint venture with Rio Tinto to set up a new mining company with a split profit.　　This has been the dream of BHP Billiton, its ultimate goal is to merge Rio Tinto to build the world's mining companies of the Big Mac. But is Chinalco the only loser? Xiong, president of Chinalco, who is visiting Australia, said he was very disappointed with Rio's decision. But by advancing the implementation of this transaction, Chinalco participates in the operation of global resource projects, strengthens exchanges and cooperation with international mining companies and Chinese financial institutions, accumulates rich experience in overseas mergers and acquisitions, and builds and exercises a team familiar with international operations, demonstrating the good social image of Chinese enterprises, All this is the precious wealth that Chinalco obtains on the way of implementing internationalization strategy.