All-cash proposal for full Turquoise Hill ownership

(Posted on 18/03/22)

Rio Tinto has made a non-binding proposal to the Turquoise Hill Board to acquire the approximately 49% of the issued and outstanding shares of Turquoise Hill that Rio Tinto does not currently own (the “Proposed Transaction”). Under the terms of the Proposed Transaction, Turquoise Hill minority shareholders would receive C$34 in cash per Turquoise Hill share, representing a premium of 32% to Turquoise Hill’s last closing share price on the Toronto Stock Exchange. This proposal would value the Turquoise Hill minority share capital at approximately US$2.7 billion.

The Proposed Transaction follows the recent comprehensive agreement reached between Rio Tinto, Turquoise Hill and the Government of Mongolia to move the Oyu Tolgoi project forward, reset the relationship between the partners and approve commencement of underground operations. It would simplify the Oyu Tolgoi ownership structure, strengthen Rio Tinto’s copper portfolio, and reinforce its long-term commitment to Mongolia. In addition, the Proposed Transaction provides Turquoise Hill minority shareholders with the ability to realise compelling, immediate and certain value for their shares at a time when uncertainties inherent in the development of the underground operations and funding of such development remain.

Rio Tinto Chief Executive Jakob Stausholm said “Rio Tinto strongly believes in the long-term success of Oyu Tolgoi and Mongolia, and delivering for all stakeholders over the long-term. That is why we want to increase our interest in Oyu Tolgoi, simplify the ownership structure, and further strengthen Rio Tinto’s copper portfolio. We believe the terms of proposal are compelling for Turquoise Hill shareholders.

“The Proposed Transaction would enable Rio Tinto to work directly with the Government of Mongolia to move the Oyu Tolgoi project forward with a simpler and more efficient ownership and governance structure. With our relationship reset and the underground operations commenced, this transaction demonstrates our clear and unequivocal long-term commitment to Mongolia.”

Rio Tinto looks forward to working constructively with the Turquoise Hill Board to progress the Proposed Transaction. Should Turquoise Hill investors not accept the Proposed Transaction, Rio Tinto welcomes their continued investment and equal share of future risks and funding obligations.

Rio Tinto’s proposal to the Turquoise Hill Board will be filed promptly with the Securities and Exchange Commission in accordance with applicable laws and regulations in the United States. The Proposed Transaction, which is expected to be conducted by way of a Canadian plan of arrangement, will be subject to customary closing conditions, including approval by a majority of the votes cast by Turquoise Hill minority shareholders. The Proposed Transaction is not subject to any financing condition or due diligence.

No agreement has been reached between Rio Tinto and Turquoise Hill, and there can be no assurance that any transaction will result from these discussions. Even if a transaction is agreed, there can be no assurances as to its terms, structure or timing.

Credit Suisse, RBC Capital Markets and Rothschild & Co are acting as financial advisors to Rio Tinto, and McCarthy Tétrault LLP and Sullivan & Cromwell LLP are acting as legal advisors. Rio Tinto and its advisors stand ready to work with the Turquoise Hill Board of Directors to agree to the terms of, and implement, the Proposed Transaction. 

Latest News

Pilbara production record as Rio Tinto releases Q2 results

Rio Tinto has driven performance to achieve 3% YoY CuEq1 growth in the first half of 2026.Chief Executive... Read more

Record iron ore production helps strengthen BHP growth pipeline

BHP have released its Operational Review for the year ended 30 June 2026.Chief Executive Officer, Brandon... Read more

Stranded sulphur cargoes in Gulf face mounting corrosion risk, warns Brookes Bell

Bulk carriers carrying elemental sulphur cargoes in the Strait of Hormuz are at significant risk of... Read more

BHP and Faraday Copper sign definitive San Manuel agreement

Further to BHP’s announcement in February, BHP, through a wholly owned subsidiary, has executed... Read more

Urea price dive hits Australian grain suppliers

Australia’s Federal Government's fertiliser support package has come under scrutiny as global... Read more

SSAB pauses work at construction site in Luleå

SSAB has once again paused work at the construction site for its new steel mill in Luleå, Sweden... Read more

Trafigura issues USD500 million senior bond

Trafigura Group Pte Ltd. has announced the issuance of a USD500 million senior Reg S bond with a five... Read more

NGFA welcomes Senate Farm Bill proposal

The National Grain and Feed Association (NGFA) in the USA has welcomed the release of Senate Agriculture... Read more

Agreement paves way to deliver 2.7 million tonnes of additional copper production

Anglo American plc, through its 50.1%-owned subsidiary, Anglo American Sur S.A., and Codelco, have announced... Read more

SSAB and partners launch closed loop steel recycling initiative in US

SSAB Americas, The Greenbrier Companies and Alter Trading are partnering on a circular economy project... Read more