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Australia:Abortion of deal 'commercial matter'

(Xinhua)
Updated: 2009-06-05 15:32

SYDNEY - Australian Treasurer Wayne Swan, commenting on the now aborted deal between Rio Tinto and Chinalco, said on Friday that it was a commercial matter for the private sector and did not concern the government.

Rio Tinto has announced its deal with the Chinese state-owned company was no longer viable, and would instead hold a 19 billion Australian dollars (US$15.27 billion) rights issue.

Related readings:  Rio Tinto-Chinalco $19.5B deal now dead  Chinalco confirms deal breakup with Rio Tinto  Chinalco deal 'win-win' for Australia-China: Chinese ambassador  Rio shares climb on Chinalco deal news  Chinalco's roadblocks decreasing

The announcement means Swan will no longer have to make a decision on whether to allow Chinalco to hold a major stake in one of Australia's largest companies.

However, Swan indicated he was not averse to such a deal in principle.

"Australia welcomes foreign investment, it is very important to this country and we do welcome proposals from foreign countries provided they are in the national interest, but I gather from what I've heard ... that there are commercial arrangements that have been reached and that's entirely a matter for the companies involved and I can't comment any further." Swan was quoted by the Australian Associated Press as saying.

The aborted deal would have involved joint investments worth 15 billion Australian dollars (US$12.05 billion) in aluminium, copper and ore mining with Rio Tinto.

The deal would have bought 9 billion dollars (US$7.23 US billion) worth of convertible bonds in the company.

If redeemed for shares, the bonds would have almost doubled Chinalco's existing 9 percent stake in Rio Tinto Group to 18 percent.