The Rio Tinto Ltd (ASX: RIO) share price is trading lower on Monday morning.
At the time of writing, the mining giant's shares are down 1% to $115.90.
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Why is the Rio Tinto share price falling?
The Rio Tinto share price is falling today after weakness in the materials sector offset the release of a positive update on its proposed takeover of Turquoise Hill Resources.
The mining giant is aiming to acquire the Canadian miner in order to increase its stake in the massive Oyu Tolgoi copper and gold project in Mongolia to 66%.
According to today's update, things have taken a major step forward after Rio Tinto received the required support from Turquoise Hill Resources shareholders for its proposed acquisition of the approximately 49% of the issued and outstanding shares of Turquoise Hill that it does not currently own.
What's next?
Due to the transaction is being conducted by way of a Canadian plan of arrangement, it remains subject to the final approval of the Supreme Court of Yukon. A hearing has been scheduled for 14 December.
If all goes to plan, completion of the acquisition is expected in the days following court approval, after customary closing procedures.
Rio Tinto's Copper chief executive, Bold Baatar, was pleased with the news. Baatar commented:
We welcome the support from minority shareholders, which is a key milestone in our acquisition of TRQ. This transaction will deliver significant benefits for all shareholders, and allow us to progress the Oyu Tolgoi project in partnership with the Government of Mongolia with a simpler and more efficient governance and ownership structure.
