Mining giant Rio Tinto has scrapped a 13 billion euro tie-up deal with China’s Chinalco.
It is forming a joint venture instead with BHP The collapse of the Chinalco deal which was put together at the height of the financial crisis back in February was aimed at reducing Rio’s mega-debt of 26 billion euros. Shares in Rio jumped by as much as 13 per cent to a 7 month high. BHP rose 10 per cent. Rio shareholders didn’t like the Chinalco deal because they believed it would have given China a greater influence over pricing.