Rio Tinto buys Tata's Riversdale stake in $1.1bn deal

Rio Tinto has been looking to acquire mining companies to further expand its operations

Mining giant Rio Tinto has bought Tata Steel's 26% stake in Australia's Riversdale, taking its holding in the company to 99.74%.

Rio paid A$16.5 per share, valuing the deal at A$1.06bn ($1.1bn; £700m).

However, it was forced to raise its offer and extend deadlines due to a slow response from the shareholders.

The move came after it acquired Brazilian steelmaker Companhia Siderurgica Nacional's 19.35% holding in Riversdale earlier this year.

Rio said it will now move to a compulsory acquisition of the company.

"This is a great outcome for Rio Tinto," said Doug Ritchie, Rio Tinto Energy's chief executive.

"The Riversdale acquisition reinforces our strategy of investing in and operating, long-life, cost-competitive mines and businesses with significant growth potential," he added.