Market Chatter: Rio Tinto Group's Listing Unification Could Cost Up to $15 Billion, Warns Goldman Sachs

MT Newswires Live
04-02

Rio Tinto Group's (ASX:RIO) unification of dual-listed structure could cost $7 billion to $15 billion according to Goldman Sachs, The Australian reported on Tuesday.

The move can impact the company's balance sheet, dividends, and growth while losing the ability to pay fully franked dividends to Australian shareholders could cost $3.4 billion, the report added.

The investment bank said in the report that it estimates $5 billion to $7 billion in capital gains tax, $400 million in stamp duty, and loss of tax benefits from marketing operations in Singapore while debt could exceed $20 billion, delaying growth projects and reducing dividend payout capacity.

The miner's shares fell 2% on market close.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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