The collapse of the biggest investment deal in both Australian and Chinese corporate history occurred mid last year, with Rio Tinto shareholders withdrawing its support for a $US19.5 billion investment from Chinalco (a Chinese state-owned entity).
The failure of the bid was due to shareholders believing that it would have given Chinalco too much control over Rio, including significant influence over the pricing of resource commodities and the power to nominate board members.
The close of negotiations spared the Financial Investment Review Board the task in determining whether or not to block the deal on national interest grounds, as well as saving the government a political annoyance in its diplomacy with China.
See, http://www.smh.com.au/business/chinalco-rio-deal-collapses-20090605-bxdc.html.
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1 comments:
An interesting overview of a significant breakdown in Aus-China negotiations. Will be keeping an eye out as to whether the $195 million penalty is imposed
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