BHP Billiton pays Rio Tinto $5.8 billion to build joint venture

Xinhua Canberra, June 5, the world's largest mining company BHP Billiton and the third largest mining company Rio Tinto 5th on the joint venture in Western Australia's iron ore business agreement. BHP Billiton and Rio Tinto will hold a 50% per cent stake in the joint venture, according to a statement issued by the two sides, and BHP will pay Rio $5.8 billion for the stake.　　It is reported that the synergy produced by the merger will save the cost of at least 10 billion dollars for two companies. Rio Tinto chairman Plessis said in a statement that the joint venture would build an unrivalled iron ore business with its assets and infrastructure at world-class levels.　　The BHP chairman, Ender, also said the joint venture opened a new phase of cooperation based on a world-class resource advantage. BHP Billiton issued a swap offer to Rio Tinto last February, costing about 147 billion dollars at the prevailing market value.　　But the financial crisis, BHP decided last November to abandon the acquisition. According to the Australian joint News Agency 5th, Rio Tinto's board of directors decided in London, 4th, unilaterally to cancel the Chinalco group's 19.5 billion dollar injection plan. This means that the largest overseas investment deals by Chinese companies to date have been vetoed.