Australia approves Chinalco Rio Tinto move
Updated
Analysts say they're not surprised by the Australian Federal Government's decision to approve plans by Chinese aluminium giant Chinalco to increase its stake in mining company, Rio Tinto.
The Treasurer Wayne Swan has given the go ahead for Chinalco to lift its investment in the miner to 11 per cent.
Rio Tinto is fighting a hostile takeover bid from rival BHP Billiton.
Mining analyst Stephen Bartrop from independent research house Stock Resource says the Australian Government could be expressing its concerns about the BHP bid for Rio.
"I suspect it's a subtle way - it clearly can't be seen to be taking sides," he said.
"But it is a way that ensures that its more difficult for BHP to execute the plan, so you must have a more accepting Rio Tinto board."
