The company approached Rio Tinto, the world's third-largest mining company, on Thursday, with an all-share offer of $140-billion, which was turned down.
"BHP Billiton firmly believes that the rationale for combining BHP Billiton and Rio Tinto is compelling due to the strategic fit, the expected synergies and the opportunity to create an organisation without parallel. This combination will unlock unique value for both BHP Billiton and Rio Tinto shareholders," the company said in a statement on Monday.
BHP Billiton also said that the combined group would have the financial flexibility to return significant capital to its shareholders, and that it planned a $30-billion share buy-back once the merger had been completed.
Edited by: Creamer Media Reporter
EMAIL THIS ARTICLE