Rio Tinto Group is said to have dropped out of the bidding for a stake in Sociedad y Minera de Chile SA (SQM). According to a Bloomberg report, citing unnamed sources, Rio decided not to proceed with an offer for Nutrien Ltd.’s 32 percent stake in SQM after studying information in a data room. Nutrien is selling the holding to fulfill a condition imposed by Chinese and Indian regulators on Potash Corp. of Saskatchewan Inc. when approving its merger of equals with Agrium Inc. (GM Nov. 10, 2017; Oct. 20, 2017). It was given 18 months to sell the stake.
Rio’s interest in the stake was first reported last November, and was believed to be largely driven by the Chilean company’s lithium assets (GM Nov. 10, 2017). Lithium is a key element used in electric car batteries. But, according to Bloomberg sources, Rio is pursuing other routes to capitalize on the electric-car boom, including studying development of a lithium project in Serbia. Other potential bidders for the Nutrien stake in SQM reportedly include Chinese firms Tianqi Lithium and Ningbo Shanshan Resources, and investment fund GSR Capital (GM Dec.1, 2017).