Business

Rio Tinto buys Tata's Riversdale stake in $1.1bn deal

A reclaimer places coal in stockpiles after processing at Rio Tinto's mine
Image caption Rio Tinto has been looking to acquire mining companies to further expand its operations

Mining giant Rio Tinto has bought Tata Steel's 26% stake in Australia's Riversdale, taking its holding in the company to 99.74%.

Rio paid A$16.5 per share, valuing the deal at A$1.06bn ($1.1bn; £700m).

However, it was forced to raise its offer and extend deadlines due to a slow response from the shareholders.

The move came after it acquired Brazilian steelmaker Companhia Siderurgica Nacional's 19.35% holding in Riversdale earlier this year.

Rio said it will now move to a compulsory acquisition of the company.

"This is a great outcome for Rio Tinto," said Doug Ritchie, Rio Tinto Energy's chief executive.

"The Riversdale acquisition reinforces our strategy of investing in and operating, long-life, cost-competitive mines and businesses with significant growth potential," he added.

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