Mining and metals: China joins the frenzy
Some recent news confirmed once again (as if we needed it) that the scramble for mining and metallurgy assets is still at full throttle. Excess capital thanks to high prices as well as a musical-chairs frenzy are the culprits. While the bids are coming from all quarters, the latest participants are bidders from Chinese companies. Their bids are driving up the value of companies, even as they try to fuel a growing demand within China.
The biggest of all is the $120 billion hostile offer of Australian iron mining giant BHP Billiton to buys its biggest rival, Australia's Rio Tinto. Those two companies, already two of the three leading iron ore companies and with a death grip on iron pricing, would be a fearsome combo. Rio Tinto flatly refused the offer, and there was talk that a white knight (for example, China's Baosteel, which hinted at such a deal) might move in. Right now, the situation appears to be a standoff, but the opening bell has been rung.
Also in the iron ore business, Australia Midwest Corp. is fending off a one billion hostile bid from Australian rival Murchison Metals Corp. It also announced a $1.1 billion bid by Chinese steelmaker Sinossteel.
A Canadian copper mining firm with the non-Canadian name Northern Peru Copper Corp. announced it received a $449 takeover bid form Chinese companies China Minmetals Nonferrous Metals Co. and Jiangxi Copper. This bid comes a few months after Aluminum Corp. of China announced the purchase of Canada-based Peru Copper Inc., for $757.5 million.
Meanwhile, #1 global steelmaker ArcelorMittal announced an offer $1.7 billion to buy the remainder of China Oriental Group Co. It currently owns around 28 percent.
And in other news, the ever accumulative Swiss company Xstrata has made a $940 million bid for Australia coal miner Resource Pacific. It is outbidding Australian coal miner New Hope Corporation. Earlier this year, Xstrata took over Austral Coal for around $500 million and is negotiating with nickel miner Jubilee Mines. Both are also Australian companies,
Other recent deals.
8:39:46 PM 
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