The Clap Turquoise Hill (NYSE: TRQ) rejected Rio Tinto’s (NYSE: RIO) offer to buy the 49% stake of the company that it doesn’t own.
Rio Tinto is the world’s second-largest metals and mining company and holds a majority stake in Turquoise Hill. Turquoise Hill is a mineral exploration and development company that focuses on developing mining fields.
The Deets The $2.7 billion offer was rejected as Turquoise Hill does not believe that it is a fair valuation of the company.
Turquoise Hill’s shares dropped by around 11% following the rejection, while Rio Tinto’s shares dropped by more than 2.5%.
Why the Offer? Turquoise Hill has a massive copper-gold mining deposit in Mongolia. If Rio Tinto’s offer was accepted, they would have had an easy path to directly own this project.