The firm, through its New York, Beijing, London, and Washington, D.C. offices, is representing Aluminum Corporation of China (Chinalco), the Chinese state-owned commercial enterprise, which is a major diversified metals and mining company, in connection with its investment of $19.5 billion in Rio Tinto, the Australian and UK minerals producer. This is the largest foreign investment ever by a Chinese entity.
On February 12, 2009, Chinalco and Rio Tinto announced a pioneering strategic partnership through the creation of joint ventures involving Rio Tinto aluminum, copper and iron ore assets as well as Chinalco’s investment in convertible bonds in Rio Tinto, which would, if converted, allow Chinalco to increase its existing ownership at the Rio Tinto parent level up to 18%.
The firm is acting as Chinalco’s counsel on U.S. securities and regulatory (CFIUS) matters as well as providing advice regarding Chinalco’s financing arrangements. Chinalco is the largest alumina and primary aluminum producer in China and one of the leading alumina and primary aluminum producers in the world.
The Simpson Thacher team includes: Douglas Markel, Shaolin Luo and Liang Wang of the Beijing office (Corporate); Alan Klein of the New York office (M&A and Securities Laws); Euan Gorrie, Stephen Short and Aurelien Jolly of the London office (Credit); and Peter Thomas, Brijesh Dave and Gabriel Rottman of the Washington office (Regulatory).