Nasdaq.com — TORONTO–Canada’s two largest pension funds are sounding out big investment firms to partner on potential, separate bids to acquire the Canadian iron-ore assets of global mining giant Rio Tinto PLC (RIO, RIO.LN), according to people familiar with the matter.
CPP Investment Board and Caisse de depot et placement du Quebec are both seeking potential partners for their own possible bids for Rio Tinto’s 59% stake in Iron Ore Co. of Canada. Analysts have estimated the stake is worth around $4 billion, valuing the entire business at around $7 billion.
Amid falling commodity prices, miners have been rushing to sell assets as they look to manage large debt loads and investors’ complaints of low returns. With many would-be strategic buyers of the Canadian iron-ore business sidetracked with their own efforts to shed assets, big institutional investors and private equity shops are now showing interest.