Australia treasurer would block a Glencore-Rio Tinto merger -AFR
MELBOURNE, April 8 (Reuters) - Australia's treasurer has told mining industry representatives he would not allow Glencore Plc to merge with Rio Tinto (Xetra: 855018 - news) , the Australian Financial Review reported on Wednesday.
The report was published the day UK restrictions came off on Glencore (Xetra: A1JAGV - news) making a fresh approach to Rio Tinto after being rebuffed last August.
Treasurer Joe Hockey told mining industry and business figures at a meeting on March 30 there was "no way" he would allow a Glencore takeover of Rio Tinto "on my watch", the newspaper reported, citing multiple sources.
The newspaper said Hockey's office declined to comment on the private meeting, but the report said "it is understood that Mr Hockey is concerned by the possibility Rio - one of the nation's biggest taxpayers - could fall into foreign hands".
Rio Tinto Chief Executive Sam Walsh earlier this year said "people who collect tax" were among several obstacles to a Glencore-Rio Tinto deal ever going ahead.
Australia's treasurer would have to approve any foreign takeover of Rio Tinto, based on recommendations from the Foreign Investment Review Board.
Hockey stunned investors in late 2013 when he blocked a A$2.8 billion takeover bid for Australia's largest agribusiness, GrainCorp by Archer Daniels Midland Co, saying it was against the national interest.
The main attraction for Glencore in Rio Tinto is its high quality, low cost iron ore resources. Iron ore prices have plunged in the six months since Rio revealed it knocked back Glencore, weighing on the Anglo Australian giant's shares.
But Glencore's shares have fallen even more than Rio's over that time, possibly putting Rio out of its reach for the moment.
(Reporting by Sonali Paul; Editing by Joseph Radford)