World Business

SYDNEY, Australia —

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Australia has approved Aluminum Corp. of China Ltd.’s stake in miner and takeover mark Rio Tinto Ltd., Treasurer Wayne Swan said Sunday.

Swan said he approved the Chinese state-owned society’s acquisition of up to 14.99 percent of the shares in Rio Tinto PLC, the London Stock Exchange-listed arm of Rio Tinto Group. The approval came after Aluminum Corp. of China, also known as Chinalco, bought the shares.

A 14.99 percent stake in Rio Tinto PLC equates to some interest of on every side 11 percent in the pure group, which includes the Australian-listed Rio Tinto Ltd.

Swan said he approved the purchase in continuance the condition that Chinalco not propagate its shareholding above 14.99 percent without receiving new commonwealth approval.

Chinalco also agreed not to seek to appoint a adviser for Rio Tinto PLC or Rio Tinto Ltd. as tardy as its holdings were below 15 percent.

“While Australia welcomes foreign investment in our economy, we will carefully examine national interest issues where these arise in relation to foreign sovereign ownership,” Swan said.

“I esteem determined that the undertakings agreed with Chinalco are gratifying for protecting the national interest in this matter,” he added.

Chinalco issued a statement Sunday saying it welcomed the government’s decision.

Chinalco paid about 15 billion Australian dollars ($13 billion) for its imperil in Rio Tinto PLC, the biggest evermore offshore investment by a Chinese company.

Rio Tinto is currently attempting to fend off a A$163 billion ($142 billion) takeover proposal from the world’s largest miner, Australia-listed BHP Billiton Ltd.

Chinalco has said its move upon Rio Tinto was a strategic investment.

The move stoked speculation that it was prompted by Beijing to block BHP Billiton’s plans against Rio Tinto due to concerns about competition and pricing.

The Australian Competition and Consumer Commission approved the Chinalco investment in February.

The ACCC said Friday that a merger betwixt BHP Billiton and Rio Tinto may raise competition concerns in the global iron ore market.