On Wednesday, Ivanhoe Mines walked away from a crucial 2010 shareholder rights provision that ensured its majority share status in Oyu Tolgoi. Ivanhoe currently has a 66% ownership stake in Oyu Tolgoi valued at $13 billion USD. As forgoing the share cap provision, Rio Tinto will be looking to expand its shareholding stake in Ivanhoe to more than 50% percent.
Rio has been heading in this direction since the 2010 agreement as the global mining giant has funded the project during dire times of the mine construction. Rio can leverage its upcoming investment of $4 billion USD into OT as the project is currently searching for further long term financing.
Rio's handling of Oyu Tolgoi and possible takeover of Ivanhoe does have precedence. In 2007, Rio took over Canadian company Alcan with a bid of more than $38 billion USD. The merger formed Rio Tinto Alcan, the largest alumninum company in the world.