Baosteel Group denied acquisition Rio Tinto

Baosteel Group said the company lack of economic power, which denied the rumor about Baosteel to compete with BHP Billiton for the acquisition of Rio Tionto. Xu lejiang, president of Baosteel denied the local report about his interests to bid for Rio Tinto. He said, “I didn’t say that, it is just the fabrication of media.” Mining Analyst Gaven Wendt said, “Baosteel is not likely to get through the Australian foreigner investment review.” If China succeeds in bidding for Rio Tinto, it will cause a political storm in Australia, as the new prime minister, Kevin Rudd promised to bring domestic job opportunity and keep economic booming. Australia allows foreign enterprise to control small-sized mining company, but it is protective with large enterprises.