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.
Turquoise Hill says no to Rio Tinto’s buyout offer ✋
