SDL 0.00% 0.6¢ sundance resources limited

will rio chinalco deal effect sdl?

  1. 200 Posts.
    This could go under either SDL or Rio.
    If Wayne Swann gives the go ahead for Chinalco's investment in Rio will it have a material effect on SDL and other African IO juniors?
    My initial reaction is that it will be a negative for SDL as it will give the Chinese government defacto control over some of the best iron ore assets on the planet.
    Now I know that the deal wont go ahead if control is effectivly delivered to the Chinese, but we are all grown ups here, and with the $$$ being spruked I think the Chinese government will be able to through it's weight around.
    I'm also a RIO shareholder, but brought in many years ago hoping to get to $20.00. Personally I'm against the Chinese deal as I believe that it will effectivly hamstring Rio in years to come, and has the potential to turn Australian Government economic policy into a diplomatic night mare. However given Mao Tse Rudds affection for Bejing I can't see the deal being knocked back.
    What are your thoughts?
 
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