BHP-Rio Tinto talks put Chinese buyers under pressure
BHP Billiton’s attempt to take over Rio Tinto is prompting Chinese energy companies to renew efforts to explore global resources and secure raw materials, the 21st Century Business Herald reported. China Shenhua Energy Co and Yunnan Copper Industry Co – the largest coal producer and the third largest copper producer in Asia, respectively – are seeking acquisitions in Australia, Mongolia and elsewhere in the world. A takeover deal between BHP Billiton and Rio Tinto will consolidate supplies of copper, iron and coal, and reduce the bargaining power of commodity buyers. China, the largest buyer of the commodities at stake, has already been hit by a threefold gain in commodity prices since 2002. If signed, the deal is expected to also spark a new round of mergers and acquisitions between Chinese and global mining companies.