Jan. 18 at 4:39 PM
$GLNCY - So was eyeing this last week; some D&D I did , ( my take on what I read, please correct if wrong), Rio is 11% owned ( majority) by China and they are top commodity buyer, there antitrust laws see this as a copper mega conglomerate.
GLNCY will be forced to sell off assets and staking rights for this to be approved by Beijing. So price is going to drop a little on this news.
Same when Glencore purchased Xstrata in 2013, they had to sell staking rights to major copper mines in Peru in order to move forward with merging with Xstrata. Xstrata was around
$12 a share (900p) and Glencore was around
$10.
Xstrata holders received 3.05 shares of GLNCY for each share they held.
This will not be the same ratio here but a total share buyout is the top option. Which is why Rio would go along with Chinas forcing them to offload assets, the SP and value goes down.
Thoughts?