Minmetals, the Chinese group that has launched a $2.6 billion take-over of Oz Minerals, may use the purchase as a base for more acquisitions, the Australian company's chief executive Andrew Michelmore says.
"All the information I have is that they want this as their offshore vehicle to grow their base metals business," Mr Michelmore told ABC television's Inside Business program on Sunday.
"I think they are going to see this as a platform to really grow their business."
The debt-laden OZ Minerals has welcomed the takeover offer from the Chinese state-owned resource group, Minmetals Non-ferrous Metals Company Ltd (Minmetals), of 82.5 cents for each of its shares.
The struggling miner has labelled the offer favourable in light in the current economic climate.
Mr Michelmore said that without Minmetals, OZ Minerals could be calling in the administrators.
"Absolutely, at this point in time, having stared down the barrel of receivership or voluntary administration at least three times in the last few months, this is the best outcome for our shareholders," he said.
China's government-backed entities have embarked upon an acquisition spree in Australia.
Earlier this month, Rio Tinto unveiled a $US19.5 billion ($A30.32 billion) deal with China's state-backed aluminium group and major shareholder Chinalco to help pay-down its heavy debt burden.
The deal is subject to approval by Australia's Foreign Investment Review Board (FIRB) and from Treasurer Wayne Swan.
Mr Swan on Sunday told Network Ten that the decision on Chinalco's investment on Rio would be taken on its merits.
"... Our decision on the Rio-Chinalco matter will be taken on its merits," he said.
"It will be taken looking very closely at the national-interest criteria that I must apply under the law."
Also this month, Shenzhen Zhongjin Lingnan Nonfemet won control of lead and zinc miner Perilya Ltd and Anshan Iron & Steel Group Corporation lifted its interest in iron ore explorer Gindalbie Metals Ltd to 36.28 per cent.
Source: WA Today
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