Australian senate vote could impact Chinalco deal

Australia’s senate is poised to vote on reconsidering existing laws governing foreign ownership of its natural resources, with potential repercussions for Aluminum Corp of China’s (Chinalco) proposed US$19.5 billion investment in Rio Tinto, Bloomberg reported. Australia’s Treasury Department had earlier extended the regulatory review period for the deal, which would see Chinalco invest US$12.3 billion in strategic partnerships and buy US$7.2 billion in covertible bonds, and have the right to up to two seats on Rio’s board. Bloomberg cited the Daily Mail newspaper as saying Rio may change the deal over investor concerns that the existing agreement favors Chinalco, but the newspaper did not name a source for the information.