Freeport Target for Rio Takeover
From the latest Moneyweek (UK) feature article
Rio Tinto (LON: RIO) is paying off debt and has maintained both its dividend and share buyback scheme throughout the downturn. Iron ore, the group’s main commodity, looks set for a prolonged downturn and the price could fall further, but Rio is well placed as the industry’s lowest-cost producer. Its over-exposure to the metal, which accounted for 72% of its earnings in the first half of the year, also gives it an incentive to raid the market for unloved copper assets; Freeport is the likeliest target.
Eventual buyout by Rio looks more and more likely like a fait accompli for RMC.