This morning we feature Rio Tinto (NYSE:RIO) as company of the day. Rio and Chinalco signed a JV yesterday to explore mineral deposits in China. This move makes sense given Chinalco's need for technological expertise, equipment and logistical support that Rio provides. It also smooths over recent tensions since in 2009 Chinalco bid for nearly a 20% stake in Rio, which was rejected by Australian regulators and was widely viewed as a politically motivated move. We also look at Ford's ( F ) N. American car market share due to the recovery in the US auto market and its "One Ford" plan. Lastly we test your knowledge on which cable network contributes the most to News Corp (NASDAQ:NWS).
Rio Tinto- Company of the Day
On Wednesday, Rio Tinto and Chinalco, China's state owned mining major, entered into a joint venture to explore mainland China for mineral deposits. The joint venture is subject to Chinese regulatory approvals and on approval the venture will carry out operations under the name Chinalco Rio Tinto Exploration Co. Ltd. ( CRTX ) where Chinalco and Rio Tinto will hold 51% and 49% respectively.
Rio Tinto and Chinalco have had a mixed relationship in the past. In 2009, Rio Tinto walked away from a $19.5 billion bid from Chinalco to increase its stake from 9% to 18% after the opposition from Australian regulatory board that limits foreign holding in a company to 15%. This was viewed as partly a politically motivated move by the Australian government.
In 2010, the companies signed a non-binding Memorandum of Understanding in December to establish an exploration joint venture in China signaling that relations had improved.
Ford N. American Market Share - Forecast of the Day
Ford's car sales in North America have benefited from the global recovery in the automotive industry as well as the company's "One Ford" vision, which entails a focus on producing more fuel-efficient products with better designs. These steps have sparked a 22% year-over-year increase in Ford's Q1 2011 earnings and a jump in the company's market share. Read more…
Quiz of the Day
Which of these cable networks contributes most to News Corp's stock value?