8th Apr 2015 15:33
LONDON (Alliance News) - Australian Treasurer Joe Hockey has told business representatives that he would not allow Glencore to merge with Rio Tinto due to concerns about losing tax revenue, Reuters reported citing a person familiar with his comments.
According to Reuters, Hockey said that, based on the tax implications of the merger, he would not allow Glencore to buy Rio Tinto, which is Australia's second biggest miner and one of its biggest tax payers.
http://uk.reuters.com/article/2015/04/08/us-rio-tinto-glencore-australia-idUKKBN0MZ0ZY20150408
On October 7, Glencore said it is no longer "actively considering" any possible merger with, or offer for, Rio Tinto, a statement which started a six-month moratorium on making an offer, a period which ended on Tuesday. The passing of moratorium period has sparked rumours that a new deal could be on the cards.
Rio Tinto shares closed down 0.4% at 2,851.50 pence Wednesday, while Glencore ended down 1.3% at 287.00p.
By Neil Thakrar; [email protected]; @NeilThakrar1
Copyright 2015 Alliance News Limited. All Rights Reserved.
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