Rio hits snag on Turquoise Hill acquisition

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Canadian regulator takes a closer look at $US3.3 billion deal for total control of Turquoise Hill.

Rio Tinto’s bid to complete a takeover of Turquoise Hill Resources has hit another snag with a Canadian regulator opting to take a closer look at a deal done with the most vocal of theThe intervention of the body responsible for financial regulation in Quebec has forced the postponement of a shareholder vote to decide the fate of the $US3.3 billion deal aimed at simplifying the ownership structure of Mongolia’s Oyu Tolgoi copper mine.

Rio sought the latest postponement at the request of AMF as talks continue between the mining giant, the regulator and Turquoise Hill’s special committee of independent directors.Turquoise Hill shareholders Sailingstone Capital Partners and Pentwater Capital Management last week agreed to withhold their votes on the takeover bid in what was seen as a significant boost for Rio’s hope of getting the deal across the line.Sailingstone, which owns 2.

Rio Tinto owns almost 51 per cent of Toronto Stock Exchange-listed Turquoise Hill and is trying to acquire the remaining 49 per cent.

 

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