PERTH (miningweekly.com) − Diversified mining giant Rio Tinto is making inroads with its takeover of ASX-listed Riversdale Mining.

On Monday, Rio reported it had obtained a 26,13% shareholding in Riversdale, from its previously held 17,86%.

Riversdale shareholders are responding to an increased offer from Rio, in which the global miner offered A$16,50 a Riversdale share, up from the previous offer of A$16 a share, on condition of a 50% acceptance.

Rio’s revised $3,9-billion offer for Riversdale would close on March 23.

But despite the shareholder interest, Rio might still face obstacles in its bid for the Africa-focused coal miner.

India's Tata Steel said on March 2 it had increased its holding in Riversdale to 27,1%, up from 24,2%, while Brazil's CSN is also a shareholder and also increased its stake in Riversdale last month.

Tata has previously reported that it would not seek to divest of its interest in Riversdale, calling it a “strategic investment”.

 

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