First of all, Brazil's Vale did not want the Polar Bear Mining Group to succeed in acquiring Ritto. Vale was the world's largest iron ore supplier, owning more than one-third of the iron ore deposits.
Currently, Hua Xia's demand for iron ore had skyrocketed. Although they had a close relationship with Russia, Russia's iron ore reserves were not high and could not satisfy Hua Xia's market demand. Hua Xia's iron ore production was also not high, so they could only import.
Vale, BHP Billiton, and Ritto were the main importers of Hua Xia's iron ore. Hua Xia's relationship with Australia was average, but they had a close relationship with Brazil in recent years. They also had a lot of cooperation.
If the Polar Bear Mining Group succeeded in acquiring Ritto, then as Hua Xia's employee, Feng Yu would have a natural channel advantage in this aspect. Hua Xia would definitely import a large amount of Ritto's iron ore, and Vale would no longer have anything to do.
Even if Ritto could not satisfy them, they would still import BHP Billiton's iron ore. This was because many of BHP Billiton's mines were close to Ritto's, and they could save a lot of transportation costs. This would kick Vale out of the picture.
Vale then began to contact Hua Xia. One was to sign a long-term supply contract, and the other was to test if this matter was related to Hua Xia's steelmaking enterprises.
Hua Xia already knew that Feng Yu's Polar Bear Mining Group was acquiring Ritto. It was said that they had entered the negotiation stage, so they would definitely purchase from their own people in the future.
Firstly, the money was earned by their own people. Secondly, Feng Yu had never cheated his own people. They were more assured doing business with Feng Yu. Also, when they urgently needed iron ore, Feng Yu would definitely give them priority in the supply.
That was why Hua Xia and Vale both expressed that they had no plans to sign a long-term supply contract. Due to the recent instability of iron ore prices, they wanted to wait and see. In fact, they rejected Vale.
Vale saw that Hua Xia's steelmaking enterprises must know about this matter, and they wanted to say goodbye to Vale.
Hua Xia was Vale's biggest customer. If they were to suddenly lose her, it would greatly affect their iron ore sales. At this time, Vale began to contact other mining companies to obstruct the Polar Bear Mining Group.
It was very simple. As long as they made an offer to the subsidiaries of the Rito Tinto Group and took over the mines of the Rito Tinto Group, then the Rito Tinto Group would not be worth mentioning.
None of them could acquire the entire Ritto Group. Vale might be able to come up with the money, but they would never be able to get past the local government or the European Union's checkpoints. Once they acquired Rio Tinto Group, they would have a complete monopoly on the iron ore market. That would hurt the interests of all the iron ore and steel importing countries.
However, it would not be a problem if they split up the Rito Group's mines and bought them separately. Vale's expansion will not be stopped. Other companies can also expand, and Rito Group will become history.
How much premium can Polar Bear Mining Group offer? 20%? 30%? If we work together, we can increase the price by 50%!
In any case, each company would only spend an extra two to three billion USD, but it would be worth it if they could get rid of an extremely powerful competitor.
Kirilenko immediately called Feng Yu after learning about this. He was anxious to know why those companies had joined forces with Vale.
Feng Yu listened to Kirilenko and asked calmly. "Brother Ki, do you think this will work?"
Kirilenko paused for a second. Will it not work? They can offer more money, and this is a good thing for the Rito Tinto Group. Rito Tinto Group's shareholders will be more than happy.
"Brother Ki, think about this. Vale is the one leading this venture. Even if it is 20 to 30 billion USD more, it will be worth it to take over Rio Tinto Group. But they can't do it. No one will agree to let them monopolize the iron ore mines. "
"Their separate acquisition plan seems very reasonable. Everyone will split up the Rito Tinto Group, and then the shareholders of the Rito Tinto Group will also earn more money. However, think about the feasibility of this matter."
"First of all, if we acquire the Rito Tinto Group as a whole, then the headquarters of the Rito Tinto Group will definitely not be relocated, nor will its three major group companies. This will reduce the strength of local resistance."
"How are they going to split up Rito Tinto Group's mines and enterprises? How many companies and countries are involved in this? Can they really get through all these obstacles? "
"Also, 2 to 3 billion USD is nothing to Vale. Their annual profits are more than 10 billion USD, and even if it is a premium of 20 to 30 billion USD, it will be acceptable as long as it is beneficial for their business expansion."
"But what about those small mining companies, like the world's No. 2 aluminum group, Alcoa, their profits last year are only slightly more than 3 billion USD. If they are offered a premium, they will have worked for nothing, and their business will not expand much. Do you think they will agree?"
When Alcan was sold, Rito Tinto Group, Hua Xia Aluminum, Alcoa, and many other mining companies were competing for it. In the end, Rito Tinto Group won the bid at a high price and became the world's largest aluminum producer.
Alcoa did not succeed because it does not have the funds. If not, it will be the leader of the aluminum industry. Now, a company with an annual profit of only 3 billion USD wants to buy some aluminum mines at a premium of 2 to 3 billion USD. They must have the money to do so.
The US economy is not doing well, and Alcoa can only make profits. How can they dare to make any big moves?
As for the other mining companies, none of them have annual profits of more than 5 billion USD. How can they afford to buy Rito Tinto Group's businesses?
At this time, it will not be effective for them to issue shares. If the price is too high, they will not be able to sell their shares, and if the price is too low, they will suffer losses. How can they raise funds?
Vale taking the lead is just a joke. It has always been the big companies swallowing up the small companies. Since when did the small companies unite to divide up a profitable and well-capitalized company?
"So you think this matter will not succeed at all, and it is just a smokescreen released by Vale?"
Feng Yu sneered. "This is not even a smokescreen. As long as the management of Rito Tinto Group is not stupid, they will never agree. Our biggest competitor, or rather, our only competitor, is BHP. The other companies are nothing to worry about! "
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