adminchief executive Mr Alan Davies.
Rio Tinto’s diamond unit, the world’s third-biggest producer of rough diamonds was said to be worth about US$2,2 billion, according to an evaluation report by Deutsche Bank AG in March this year.
“It is clear the best path to generate maximum value for our shareholders is to retain these businesses,” said Mr Davies. The London-based company had been considering selling the assets since March 2012 and hired Morgan Stanley to oversee an IPO of the gem unit, reports said.
Rio Tinto’s new chief executive, Mr Sam Walsh, this month hosed down expectations for a sale of the diamonds unit, amid speculation the company was going to float the business after failing to find a buyer.
“This is not market day at the bazaar. I would d be quite happy to keep it,” Mr Walsh was quoted saying in an interview with The Telegraph in London.
Online Reporter