A Chinese government report into the failure of the $21.3 billion merger between Chinalco and Rio Tinto Ltd
(ASX:RIO) has cleared the local mining giant and the Australian Government.
Instead, it accepts the view in Australia that ordinary economic forces led to the collapse of what would have been China’s biggest foreign investment deal.
The report to China’s cabinet, seen by The Age newspaper, says that the failure of the merger provides an opportunity for introspection, which may lead to more politically sophisticated deals.
It also says the collapse of the deal exposes China’s lack of experience in investing the country’s enormous savings abroad.
The report’s conclusions undermine arguments that the arrest of Rio Tinto’s Stern Hu and three colleagues was an act of revenge against Australia or the company following the collapse of the Chinalco deal last June.
Stern Hu remains in custody in Shanghai, with his lawyer and consular officials having limited access.
In the 12 months to December 30, 2009, Rio Tinto booked a profit of $5.432 billion.
