BHP Billiton abandons its bid for Rio Tinto

BHP’s board said completing the offer was no longer in its shareholders’ interests after commodity prices fell and the European Commission sought divestments in iron ore and coal. BHP wrote off about $450m of costs.

Why it matters. Financing risk and antitrust remedies can kill a deal even when the industrial logic holds.

Source

BHP

In the course

Module 9: The M&A process