BHP Billiton - Joint Venture with Rio Tinto

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Slaughter and May is advising BHP Billiton PLC, as an integrated team with Blake Dawson, on a proposed production joint venture with Rio Tinto PLC covering the entirety of both companies’ Western Australian iron ore assets. The joint venture will be owned 50:50 by BHP Billiton and Rio Tinto.

Both companies believe the net present value of these unique production and development synergies will be in excess of US $10 billion (100 per cent basis).

In order to equalise the contribution value of the two companies, BHP Billiton will pay Rio Tinto US $5.8 billion for equity type interests at financial close to take its interest in the joint venture from 45 per cent to 50 per cent.

The joint venture was announced on 5 June 2009.

Nigel Boardman (partner), Richard De Carle (partner), Sarah Ullathorne (associate); Competition: Michael Rowe (partner), Sarah Cardell (partner)