Rio Tinto engages Deutsche Bank for possible coal deal
Rio Tinto [ASX: RIO, LON: RIO] has engaged Deutsche Bank to advise on the potential sale of its coal business, The Australian’s Dataroom reported, without citing sources. According to the report the appointment is likely to add strength to rumours that Rio is working on a deal with X2 Resources.
The paper noted that Rio and X2 were reported earlier this week to be involved in relatively serious talks over Rio’s coalmines in NSW and Queensland.
The paper said, citing unnamed sources, that bankers are also seeking roles with Glencore [LON: GLEN], which has shown interest previously in buying Rio’s thermal coal business. Glencore is considered by many to be the logical owner of Rio’s coal assets.
The article noted that, despite the Deutsche appointment, significant skepticism remains over the possibility of a deal.
Link to original source
Australian Financial Review