Turquoise Hill rebuffs Rio Tinto’s US$2.7b takeover bid, Qantas expands freight fleet and Allkem acquires strategic lithium tenement

Canada’s Turquoise Hill Resources (TSX: TRQ) has rebuffed mining giant Rio Tinto’s (ASX: RIO) US$2.7 billion (A$3.8 billion) takeover offer – saying the bid didn’t reflect its “full and fair value”.

The decision was made by the Turquoise Hill Special Committee, which has effectively halted Rio’s efforts to gain greater control of the Oyu Tolgoi copper-gold mine in Mongolia, which is one of the world’s largest known copper-gold deposits.

Rio Tinto, the world’s second largest miner operates Oyu Tolgoi with its 51% stake in Turquoise Hill.

Australia-headquartered Rio has expressed its disappointment over the takeover rejection, insisting the proposed transaction would’ve delivered compelling value for Turquoise Hill minority shareholders.

Rio Tinto chief executive, copper Bold Baatar said despite the setback, Rio remains committed to continuing its efforts on the Oyu Tolgoi mine.

“While we are disappointed by this decision, we will continue to work constructively with the board of Turquoise Hill to advance the Oyu Tolgoi project,” he said.

Qantas

Australia’s largest domestic and international airline Qantas (ASX: QAN) will buy six Airbus A321 aircrafts in an effort to keep up with a growing demand in online shopping.

The new freighters will be added to its domestic fleet and replace five of its ageing Boeing Co 737s.

Qantas chief executive officer Alan Joyce said the company’s airline’s freight division is one of the groups best performers, reporting record first-half earnings, as Australians shift to online shopping as a result of the pandemic.

“While some of that shift is temporary, demand remains well-above pre-pandemic levels even with the lifting of almost all COVID-related restrictions,” he said.

The aircrafts can carry 23 tonnes of cargo, more than the older 737s by 9t, while also being 30% more fuel efficient per tonne of freight carried.

Qantas expects the planes to arrive between early-2024 and mid-2026.

Allkem

Chemicals company Allkem (ASX: AKE) has announced a binding and heads of agreement to transfer its Borax operations in exchange for the Maria Victoria lithium tenement in Argentina from Minera Santa Rita (MSR).

As part of the deal, Allkem will give MSR all of the issued shares in the two Borax holding companies, as well as US$14 million (A$20 million) in cash.

MSR will also continue to employ all Borax employees.

In exchange, MSR will grant Allkem 100% ownership of Maria Victoria tenement.

Allkem managing director and chief executive officer Martín Pérez de Solay said the acquisition complements its extensive lithium brine holdings in the region and allows for more effect development of the Olaroz salar.

“The exchange of Borax which is a non-core asset allows Allkem to remain focussed on its key aim of delivering growth plans of increasing lithium production threefold by 2026 and maintaining 10% of global market share in the longer term,” he said.

The Maria Victoria tenement is approximately 1,800 hectares and located in the north of Solar de Olaroz, about 10km from Allkem’s Olaroz lithium facility in Argentina’s Jujuy province.

Tassal

Tasmania-based salmon farming company Tassal Group (ASX: TGR) has recommended its shareholders accept Canadian aquaculture company Cooke’s latest A$5.23 per share bid, which values the company at $1.1 billion.

The news comes after Cooke lodged three previous unsuccessful takeover offers.

This latest $5.23 per share bid trumps the previous highest offer of $4.85 per share takeover, which was proposed back in June.

Tassal chair James Fazzino said the most recent offer is a result of constructive engagement between the two companies.

“The Tassal board believes the revised proposal reflects appropriate long-term value for the business, and is unanimous in its view that the scheme is in the best interests of Tassal shareholders,” he said.

Mr Fazzino added the acquisition will “fast-track goal to be one of the world’s most transparent and sustainable protein producers”.

OZ Minerals

After rejecting mining giant BHP Group’s (ASX: BHP) $8.4 billion takeover bid last week, OZ Minerals (ASX: OZL) has now shifted its focus towards its West Musgrave copper-nickel project, located 1,300km north-east of Perth, Western Australia.

On Monday, the WA Government granted final regulatory approval for Adelaide-based OZ to begin construction at West Musgrave.

A pre-feasible study update in December 2020 showed the project to have an average annual production of 32,000t of copper and 26,000t of nickel over a 26-year mine life.

OZ managing director and chief executive officer Andrew Cole said the minerals to be mined at West Musgrave are essential for the global decarbonisation push.

“West Musgrave is an exciting project, intended to be a modern mine, producing minerals in demand for a decarbonising world, providing value for all our stakeholders, particularly the Ngaanyatjarra community,” Mr Cole added.