Chapter 131: Man-Eating Crocodile (Part II)

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Although the acquisition of CMM ultimately failed due to Mitsui & Co's sudden involvement, Bob . Stanton's acquisition of Billidon has made BHP Billiton one of the world's leading mining groups. Stanton was not criticized for the failure of the acquisition of CMM, but for the successful acquisition of Billidon. Stanton has made a name for himself in the industry.

The talent and ruthless approach he showed in these two mergers and acquisitions gave him the terrifying and chilling nickname "man-eating crocodile".

Bob Stanton didn't put the nickname to shame, and over the next few years, Mr. Cannibal once again showed his extraordinary vision and means, initiating two unsuccessful but irreversible mergers and acquisitions that shocked industry insiders.

After the acquisition of Billidon Company, Bob . Stanton successfully became the Investment Manager of BHP Billiton, where he was responsible for external mergers and acquisitions. In the first few years of the new century, BHP Billiton did not have any major mergers and acquisitions, which made many people in the industry think that Bob. Stanton, the man-eating crocodile, was already full and ready to digest it for a while.

However, just when the world gradually forgot about this man-eating crocodile, on May 9, 2007, BHP Billiton suddenly proposed to acquire the Australian Rio Tinto Group, which is also a mining giant, at a price of 122 billion Australian dollars, about 120 billion US dollars!

As soon as this news came out, it was as if a magnitude 10 earthquake had occurred in the mining industry around the world.

With the rise of China's domestic market, the global price of iron ore is also soaring, so in order to be able to control China, the emerging world's largest market, the world's major iron ore suppliers are desperately expanding production capacity.

At the time, Brazil's Vale was the undisputed world's largest supplier of iron ore. The ambitious BHP Billiton has long coveted Vale's status, and in 2006, a year before BHP announced its offer to Rio Tinto, Vale accounted for 27% of the world's iron ore supply, a figure that other iron ore suppliers can only look up to.

But BHP Billiton has long coveted Vale's status, coupled with the sharp rise in international iron ore prices. Stanton has set his sights on Rio Tinto, also based in Australia. Because once BHP Billiton can acquire Rio Tinto, then the combined BHP Billiton's iron ore supply will immediately surpass Vale's, reaching 27.8% of the world's iron ore supply, thus successfully overturning Vale from the world's first throne.

However, when BHP Billiton made a bid of $122 billion, Rio Tinto did not hesitate to reject BHP's offer. Stanton didn't give up, and then in early November of '07, Bob . Stanton has thrown out another acquisition plan, which is to exchange three shares of BHP Billiton for one share of Rio Tinto, so as to complete the acquisition of Rio Tinto.

The deal was more sincere than the one in May, because at BHP's stock price at the time, would have been worth $145 billion if the deal had been completed in such a share swap.

However, this plan was still rejected by Rio Tinto shareholders because there were three reasons for the concern of Rio Tinto shareholders, the first reason was that the world's largest iron ore buyer at that time, the customer base from Huaxia, strongly opposed the market monopoly, and worried that the price of iron ore would continue to soar after BHP Billiton's acquisition of Rio Tinto. Concerns from Rio Tinto's largest customer base have a lot of concern for Rio Tinto's shareholders.

The second reason is that the British Columbus Steel Group has filed a complaint against the EU over BHP's acquisition of Rio Tinto, and Rio Tinto's shareholders are worried that the acquisition by BHP Billiton will lead to an investigation by the EU Antitrust Committee.

The third reason is that Rio Tinto directly rejected BHP's plan, because at the most critical moment, the European Steel Industry Federation directly issued a statement, that is, urging the European Commission to directly reject BHP's application to acquire Rio Tinto.

Under these three pressures, Rio Tinto's shareholders had to reject BHP's merger proposal. But BHP Billiton still doesn't give up, Bob. On November 12, 07, Stanton announced the details of the acquisition plan in order to gain the support of the community and re-energize the shareholders. Stanton privately threatened Rio Tinto that BHP Billiton would not mind using a violent hostile takeover to force the merger if it did not agree to the plan.

At this point, Bob. Stanton's wrist was revealed, and the man-eating crocodile was about to swallow Rio Tinto in one gulp. However, just when Rio Tinto's shareholders were under pressure, Bob . Stanton abruptly abandoned the acquisition, because Bob . Stanton keenly feels that the global economy is about to face an inevitable cold snap due to the subprime mortgage crisis in the United States, and BHP Billiton is likely to be greatly affected by this economic crisis.

Compared with future development, it is important to better preserve BHP's strength at this time. Hence Bob. Stanton did not hesitate to terminate the acquisition.

And the facts also prove that Bob. Stanton's vision is so sharp that not long after BHP Billiton terminated the acquisition, the subprime mortgage crisis that broke out in the United States in mid-07 finally began to cause a chain reaction around the world, and brought an inevitable cold snap to the global economy. BHP Billiton, on the other hand, has not spent a huge amount of money to acquire Rio Tinto, thus preserving great strength and continuing to maintain a strong momentum in this global economic crisis.

This time the wise and decisive strong man broke his wrist and made Bob. Stanton became Vice President of BHP Billiton and also headed the Mining Division, the most important division of the company!

But Bob. Stanton still hasn't stopped his acquisitions, and less than three years after the Rio Tinto deal ended, Bob Stanton. Stanton has set its sights on Canadian Potash Corp., the world's largest potash producer.

On August 12, 2010, BHP Billiton proposed a merger of the two companies to Canadian Potash, but was rejected by the CEO and chairman of Canadian Potash. Stanton immediately bared his fangs and announced on August 18 that he would carry out a hostile takeover of Canadian Potash at a price that exceeded 32% of the average price of the previous 30 trading days, or about $130 per share, with a total value of about $38.6 billion.

And this hostile takeover case was even approved by the Federal Trade Commission of the United States!

Seeing that the world's No. 1 potash fertilizer company was about to change its name, at a critical moment, the Canadian government came forward to directly reject BHP's acquisition plan on the grounds that "this acquisition is not in Canada's national interest, and BHP Billiton lacks experience in extracting and selling crop fertilizers", and finally forced BHP to abandon the nearly $39 billion merger and acquisition.

Although the third shot was still unsuccessful, Bob . Stanton's ruthlessness has been revealed, and no one has been able to learn from the nickname of the man-eating crocodile. Stanton's head was taken off.

And now, Bob. Stanton turned his attention to the newly emerging Tang Mining Company, which has just emerged in the mining industry, and the people in the global mining industry have now moved their benches and are waiting to see a good show!