Rio names new chairman as Chinalco row escalates

Rio Tinto named a new chairman to help get a planned $19.5 billion tie-up with Chinas Chinalco approved, as Australian politicians opposed to the deal raised their level of protest on Tuesday. Designed to help Rio cut its $39 billion debt burden, the deal has aroused political concerns in Australia about key assets falling into Chinese hands and sparked complaints from investors who say one shareholder is being favoured over others.
Jan du Plessis, chairman of British American Tobacco Plc, was appointed to the same position at Rio after a previous failed attempt to find a new chairman. Last month, Rio chairman-elect Jim Leng quit the board after objecting to the Chinalco deal. Du Plessis, a 55-year-old South African, will continue to be chairman of BAT, a post he has held since 2004. Du Plessis joined Rios board as a non-executive director in September. Du Plessis said the deal with Chinalco would give Rio Tinto the best platform to weather the global downturn.