Rio Tinto in talks to buy Riversdale: report

LONDON (BestGrowthStock) – Global mining group Rio Tinto (RIO.L: ) is in talks over a 2 billion pound ($3.2 billion) bid for Australian rival Riversdale Mining (RIV.AX: ), British newspaper The Sunday Telegraph reported.

The British newspaper, citing unnamed sources, said Rio was bidding around A$15 per share for Riversdale, whose shares closed at A$14.10 on December 3.

The Sunday Telegraph said it was not certain a deal between the two companies would be completed.

A Rio Tinto spokesman in London said the company did not comment on market speculation.

Riversdale’s major shareholders include Tata Steel (TISC.BO: ), Brazilian steelmaker CSN (CSNA3.SA: ) (SID.N: ) and China’s Wuhan Iron & Steel Corp (600005.SS: ).

Riversdale has potentially lucrative assets in Africa and the company announced a coal discovery in Mozambique in October.

($1=.6338 Pound)

(Reporting by Sudip Kar-Gupta; Editing by Karen Foster)

Rio Tinto in talks to buy Riversdale: report