BHP shares soar as China seeks ally
CHINESE interests have approached a major Australian superannuation and investment fund to be their partner in a multi-billion-dollar swoop on 9 per cent of BHP Billiton.
Shares of BHP Billiton rose more than 4 per cent to a record $50 after the stock market opened today. By early afternoon, BHP shares were up $1.68, or 3.5 per cent, to $49.66. The benchmark S&P/ASX 200 Index was 1.3 per cent higher.
Under the terms of the proposed deal, the Chinese would take 4.5 per cent of BHP Billiton while the other half would be split between the Australian fund and a global private equity investor....MORE
From International Political Economy Zone:
Rio Tinto and China: A Love-Hate Relationship
Let us start with the sunnier of two articles on this relationship. First, Rio Tinto is seeing Chinese investment as a potential source of funding in its Simandou project in Guinea. Although the African mine is much closer to Europe, Chinese demand may become the deciding factor in the future for this project which is partially funded by the IFC. From the Financial Times:
Rio Tinto is seeking partnerships with Chinese steel and construction companies to help develop a $6bn (£3.08bn) West African iron ore mine, in what would be the mining group’s largest deal with