Industry News

Rio Tinto considers asset swap to reduce Chinese shareholding

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Update time : 2025-10-24 16:26:10
Global mining giant Rio Tinto is reportedly exploring an asset-for-equity swap with Aluminium Corp. of China, Chinalco. News sources reported, citing sources close to the matter, that this move aims to reduce Chinalco’s current 11 per cent stake by up to 2 percentage points, potentially down to around 9 per cent.

This strategy would provide Rio Tinto with more flexibility. As sources highlighted, it allows the company to end governance constraints and allocate capital to mergers, acquisitions, and share buybacks. Rio Tinto Group did not provide a comment when contacted by a national media organisation. Meanwhile, Aluminium Corp. of China did not immediately respond to the inquiry.

Implications for market and investors

The potential deal arrives amid volatile commodity prices and rising geopolitical tensions. Traders are closely watching related markets. Rio Tinto’s London-listed shares recently hovered around 4,500 pence ( USD 59.88) , reflecting a 2 per cent uptick over the past week as of October 22, 2025. Analysts suggest that positive sentiment could drive resistance to 4,700 pence, making short-term volatility likely. Volume spikes could signal upcoming breakouts in mining stocks.

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