Mining behemoth Rio Tinto is continuing its drive to cut costs and provide better returns to shareholders and it looks set to offload its Canadian mining operations – potentially to private equity giant Blackstone.
Under new CEO Sam Walsh the company is looking to make around $5 billion in savings by the end of next year. It is also seeking to offload some less profitable or internally uncompetitive assets.
The Wall Street Journal reports that Blackstone, the world’s largest private equity firm, and resources giant Glencore Xstrata are among the potential bidders for Rio’s 59% stake in the Iron Ore Co. of Canada.
Rio’s stake in the company is estimated to be worth around $4 billion.
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