Following the takeover that Rio had auctioned way back in the year 2007, it has yet again decided to make a major acquisition, which would set it back by $16-a share this time. The latest move by Rio Tinto has come on the increasing demand for coking coal in Asia, which happens to be a major component of steel production.

The Company requires backing of a minimum of one conglomerate, which is the stakeholder for Riversdale. Companies like Tata Steel from India and CSN from Brazil are one of the three major groups, which can second the bid by Rio Tinto.

Talking about the current situation, the Managing Director for Riversdale, Steve Mallyon, while talking to the Reuters said that he was looking for thumbs up.

According to Mallyon, the third largest owner of Riversdale, Passport Capital was already in talks with the organization and would be able to provide Rio Tinto with 14.9% of the shares for the organization. He further added that there was no such agreement that had been reached between the two and that Passport had just put some shares out in the market for Rio.

Mallyon also felt that both Tata and CSN would not usually have any problems with the latest situation. Though, it needs to be noted that the board nominee for TATA had not voted on Rio’s bid and had even declined to talk about Tata’s stance on the takeover.