China's reported attempt to use the British legal system to stymie a mega-merger in the mining industry is likely to benefit the Clifford Chance law firm.
Beijing wants to make sure that BHP Billiton's attempted takeover of mining peer Rio Tinto doesn't work out as planned, and officials from the Chinese embassy in London are reportedly seeking legal advice as to whether it will be possible to block the multi-billion dollar deal.
London lawyers said Monday that Clifford Chance, which already represents state-controlled aluminum firm Chinalco, holder of a 12% stake in Rio Tinto, had been approached by officials from the Chinese embassy in London to advise them on how Beijing could upset the takeover, which BHP is scheduled to re-launch by this Wednesday.
China doesn't want the world's largest miner, BHP Billiton, to buy Rio Tinto in a multi-billion dollar deal. China wants cheap and easy access to minerals, so it does not want a powerful company such as BHP to dominate the market.
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