The Rio Tinto Limited (ASX: RIO) share price is having a decent start to the day on Wednesday.
In morning trade, the mining giantâs shares are up 2% to $92.20.
Why is the Rio Tinto share price pushing higher?
As well as getting a boost from a recovering iron ore price, the Rio Tinto share price is pushing higher today after the company announced a potentially positive development in its quest to acquire Turquoise Hill.
Rio Tinto is currently trying to acquire the 49% stake in the copper miner that it does not already own for C$43.00 per share. If successful, it will increase Rio Tintoâs stake in the massive Oyu Tolgoi copper and gold project in Mongolia to 66%.
According to the update, the company has entered into agreements with Pentwater Capital Management and SailingStone Capital Partners that will see the two parties withhold their votes at next weekâs special meeting and exercise their dissent rights in respect of the arrangement.
Rio Tinto has also agreed to increase the dissent condition under the arrangement agreement from 12.5% to 17.5% of Turquoise Hill shares outstanding.
In addition, the mining giant revealed that the parties have agreed that the dissent proceedings and certain other claims shall be conducted by arbitration, and the securityholders will be paid C$34.40 of the consideration following the completion of the arrangement. The remaining consideration will be payable following the final determination of the arbitration.
Finally, Rio Tinto once again stressed that its offer of C$43.00 per share for Turquoise Hill is its best and final offer.
The post Why Rio Tinto share price pushing higher today? appeared first on The Motley Fool Australia.
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More reading
- Which ASX 200 mining shares managed to dig up gains in October?
- Could ASX 200 iron ore shares be heading for more pain?
- Why CBA is much more upbeat on Rio Tinto shares than the government
- Why is the Rio Tinto share price in the doldrums today?
- Why is the Fortescue share price surging today?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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