British mining conglomerate RTZ and its 49%-owned Australian affiliate CRA will reorganize to produce a single corporate structure in which the two companies retain their individual stock market listings. The combined companies will constitue the world’s largest mining group.
The new conglomerate will be more diversified geographically, combining RTZ’s assets in the Western Hemisphere with CRA’s in the Eastern Hemisphere. The commodities produced will be more balanced: where copper provides RTZ with 24% of its turnover, this fraction will fall to 18% in the new entity.
General meetings of both companies will be called to approve the merger, which is also subject to approval by regulatory authorities. Australian regulatory requirements oblige CRA to provide an outside opinion to its minority shareholders on the proposal. The companies will combine their boards of directors into a single board, and the chairman of each company will ultimately become deputy chairman of the other.
The companies will share revenues and offer the same dividends to shareholders.
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