In a strategic move to bolster its holdings in the aluminium industry, mining giant Rio Tinto (ASX:RIO) has announced the acquisition of Mitsubishi Corp’s (TYO: 8058) 11.65% stake in Boyne Smelters. This deal will increase Rio Tinto’s interest in the entity to a commanding 73.5%. Boyne Smelters is the owner and operator of the Boyne Island aluminium smelter situated in Gladstone, Australia, a joint venture previously shared among Rio Tinto, YKK Aluminium, and other partners.
The acquisition aligns with Mitsubishi’s broader strategy to restructure its aluminium portfolio. The divestiture’s impact on Mitsubishi’s annual earnings forecast is anticipated to be minimal. Post-sale, Mitsubishi will turn the page on holding stakes in aluminium smelters, but will remain active in the wider aluminium business. The corporation’s focus will pivot to trading roles and investments in bauxite mining assets, which are integral to aluminium production.
Mitsubishi’s ongoing engagement in the aluminium and bauxite sectors is exemplified by its 2021 agreement to acquire a 30% interest in the Aurukun bauxite project located in Australia, from commodities giant Glencore.
Other noteworthy updates in the financial sector include Chinese autonomous driving firm Minieye Technology, with backing from Alibaba Group’s CEO Eddy Wu Yongming, making strides toward an initial public offering. The company has filed to list on the Hong Kong Stock Exchange, seeking to raise upwards of $150 million.
Lastly, insights into the banking industry reveal that Morgan Stanley’s CEO Ted Pick sees the climate of increasing interest rates as favourable for the firm’s operations. This outlook continues along the path charted by his predecessor, James Gorman, indicating a strategic posture that embraces tighter monetary conditions.
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The transaction’s financial particulars between Rio Tinto and Mitsubishi have not been disclosed, leaving the industry speculating on the valuation of the nearly 12% stake in Boyne Smelters. With Rio Tinto’s amplified stake, it is expected to further consolidate its influence within the aluminium market, a space that continues to evolve with corporate manoeuvres and the fluctuating dynamics of global commodities trade.
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