Australia’s ACCC: Won’t Oppose Chinalco’s Stake In Rio Tinto

MELBOURNE (Dow Jones)-Australia’s competition regulator Wednesday said it won’t oppose the acquisition of a stake in Rio Tinto Ltd. (RTP) by Aluminum Corp. of China, also known as Chinalco.

Chinalco and U.S. aluminum producer Alcoa Inc. (AA) have together purchased a 12% stake in Rio Tinto’s London-listed stock — equivalent to 9% of the whole group — in a move some analysts believe is designed to stymie BHP Billiton Ltd.'s (BHP.AU) takeover offer for Rio.

The Australian Competition and Consumer Commission said on its Web site that it "considered that, given the nature and extent of the interest acquired, the acquisition was unlikely to substantially lessen competition."

Chinalco has said it has no intention of making a bid for Rio Tinto and has no plans to raise its stake.