The news that the M&A plan passed the Australian government's review greatly boosted investors' confidence, and the share prices of BHP Billiton and Rio Tinto both rose sharply. As of 2: 53 pm Australian time, BHP Billiton's share price on the Sydney Stock Exchange rose 6.3% to A $32.96 per share. Rio Tinto shares rose 1 1.7% to A $94.90 per share. In the early stage, the global financial crisis aggravated the market's worries about economic depression, and the global raw material prices continued to fall, and the share prices of mining giants such as BHP Billiton and Rio Tinto also suffered heavy losses. On June 9, 2009, Rio Tinto and BHP Billiton signed a non-binding agreement, and decided to set up a joint venture production company including all the iron ore assets of the two companies in Western Australia. This company will be responsible for the existing and future iron ore resources exploitation and debt in Western Australia, and its shares will be held by the two companies at a ratio of 50: 50.
The joint venture company will release the overlap and world-class resource value of the two companies. Both companies believe that the net value created by special production and development can be as high as $654.38+000 billion (this is based on 100%). Such remarkable value-added effects mainly come from:
Combine scattered adjacent iron ores into a unified operating deposit;
Reduce costs by shortening railway transportation distance and improving port distribution efficiency;
Seize the opportunity, recycle products to the maximum extent, and improve future operational efficiency.