FIRB expected to delay Rio-Chinalco decision

The Foreign Investment Review Board (FIRB) is expected to take its time in deciding whether to allow state-backed Chinalco to make a $US19.5 billion ($A29.8 billion) investment in mining giant Rio Tinto. According to The Australian Financial Review, the review board is expected to insist on a 90-day extension due to the complexity of the deal and the volume of applications by Chinese state-owned groups for investments in Australian resource companies. The first deadline to rule on the deal expires on Sunday 15 March. Chinalco plans to pay $US12.3 billion for stakes in key iron ore, copper and aluminium assets from Rio Tinto and $US7.2 billion for convertible notes which will double its equity interest in the company to 18 per cent. Yesterday the parliament voted overwhelmingly to defeat a motion aimed at sinking Chinalco's investment, with only five Green senators supporting the motion. source：www.businessspectator.com.au