Rio Tinto Limited (ASX:RIO, NYSE:RIO) has bought BHP Billiton Limited’s
(ASX:BHP) 37 per cent stake in South African mineral sands miner Richards Bay Minerals.
Subject to regulatory approvals the acquisition, for an undisclosed amount, will double Rio’s stake in Richards Bay Minerals to 74 per cent.
The transaction has been triggered by BHP's decision to exercise a put option agreed between the two companies as part of Richards Bay Minerals’ restructuring in 2009.
BHP says selling its stake will represent its exit from the titanium minerals industry.
Shares in Rio Tinto closed 0.61 per cent lower yesterday at $68.74.
Rio Tinto reported a net profit of $7.5 billion in the first half of the 2011 calendar year.
