Australian Rio Tinto to Acquire Mitsubishi’s Stake in Boyne Smelters
Australian mining giant Rio Tinto has announced its plans to acquire Mitsubishi Corporation’s nearly 12% stake in Boyne Smelters Limited (BSL). The transaction is expected to be completed in the second half of 2023, subject to regulatory approvals. BSL is a major aluminium smelter located in Gladstone, Queensland, Australia. The smelter has an annual capacity of 590,000 tonnes and supplies aluminium to the global market. Rio Tinto currently holds a 60% interest in BSL, with Mitsubishi holding the remaining 40%. The acquisition of Mitsubishi’s stake will increase Rio Tinto’s ownership in BSL to 72%. This move aligns with Rio Tinto’s strategy of consolidating its position in core assets and optimizing its aluminium portfolio. The transaction is expected to have a number of benefits for Rio Tinto, including: * Increased operational control over BSL * Improved cost synergies with Rio Tinto’s other aluminium operations * Enhanced ability to capture value from the aluminium market Rio Tinto CEO Jakob Stausholm stated, “The acquisition of Mitsubishi’s stake in Boyne Smelters will strengthen our position in the growing aluminium industry. It will also provide us with greater flexibility to respond to market dynamics and deliver value for our shareholders.” Mitsubishi’s decision to sell its stake in BSL is part of its ongoing portfolio optimization strategy. The Japanese conglomerate intends to use the proceeds from the sale to invest in other growth opportunities. The acquisition is a significant development for the aluminium industry in Australia. It demonstrates Rio Tinto’s commitment to the sector and its confidence in the long-term prospects for aluminium demand.Rio Tinto to Acquire Mitsubishi’s Stake in Boyne Smelters
Rio Tinto to Acquire Mitsubishi’s Stake in Boyne Smelters
Australian mining giant Rio Tinto has announced plans to acquire Mitsubishi Corporation’s approximately 12% stake in Boyne Smelters Limited (BSL), a major aluminum smelter in Queensland, Australia. The transaction, which is subject to regulatory approvals, will see Rio Tinto increase its ownership in BSL to approximately 77%, while Mitsubishi will exit its investment. The acquisition is expected to be completed in the first half of 2023. BSL is one of the world’s largest aluminum smelters, with a production capacity of approximately 556,000 tonnes per year. Rio Tinto owns the remaining 88% of BSL through its wholly-owned subsidiary, Rio Tinto Aluminium. Upon completion of the acquisition, Rio Tinto will have full ownership and operational control of BSL. This will enable the company to further optimize the smelter’s operations and support its long-term competitiveness. Rio Tinto Chief Executive Jakob Stausholm commented: “This acquisition is a significant milestone in our strategy to strengthen our aluminum business and position Rio Tinto as a leading supplier of low-carbon aluminum products. Boyne Smelters is a world-class asset, and we look forward to unlocking its full potential under Rio Tinto’s ownership.” Mitsubishi Corporation has been a shareholder in BSL since 1987. The company’s decision to sell its stake is part of its ongoing portfolio optimization strategy, which focuses on aligning its investments with its core businesses and sustainability goals.Australian mining giant Rio Tinto will acquire Mitsubishi Corp’s nearly 12% stake in Boyne Smelters in Queensland, Australia, for about $620 million, the companies said on Friday. Rio Tinto said the acquisition would increase its ownership in Boyne Smelters to approximately 80%. The transaction is expected to close in the fourth quarter of 2023, subject to regulatory approvals and other customary closing conditions. Boyne Smelters is one of the world’s largest aluminum smelters, with a capacity of 590,000 tonnes per year. Rio Tinto said the acquisition would further strengthen its position in the global aluminum industry and support its growth plans in the low-carbon economy. Mitsubishi Corp said the sale was part of its ongoing portfolio optimization efforts and would allow it to focus on other investment opportunities.
