Rio Seeking Asset-for-Equity Swap With Chinalco, Reuters Says

Rio Tinto Group may do an asset-for-equity swap with Aluminum Corp. of China that would cut the state-owned miner’s 11% stake in Rio, Reuters reported, citing people familiar with the matter.

Chinalco, as the Chinese company is known, would exchange part of its holding for partnerships in some of Rio’s mining assets, Reuters reported. It would also free up Rio to resume buybacks and pursue new strategic deals, the news agency said.