merger with rio

Interesting to read views but little on the merger.
BHP is still quietly pursuing its goal of getting RIo and RIO is suitably ignoring advances.But a union is inevitable.

As Confucius might have said "Man who places woman on pedestal seldom knocks her off".

Every insto who holds both knows there would be benefits in merging the two. Not in the normal sense of synergies, cos you can't merge mines etc, but the negotiations with Chinese and other benefits are there. So the instos who hold both would support a merger. Who should gain control? Frankly RIO has the more consistent record of delivering consistent high ROC over the years, so much so it behaved more like an industrial than a resources company in years when most instos ignored resources. It could end as a reverse takeover like Billiton did.

An agreed deal would provide the catalyst for re-rating of both companies which despite their gains, continue to look cheap if you subscribe to the stronger for longer view on commodities (as I do). Watch this space over next four months