Overview

• Activist investor Palliser Capital sought to unify Rio Tinto's dual-listed structure in London and Sydney, claiming it could unlock $28 billion in value for shareholders.
• The proposal garnered 19.35% shareholder support, falling just below the 20% required to mandate broader consultation under UK corporate governance regulations.
• Rio Tinto's board unanimously opposed the motion, citing significant tax liabilities and arguing that the current structure provides strategic flexibility.
• The dual-listing structure, in place since 1995, has faced criticism for its complexity, with Australian-listed shares trading at a 25% premium due to tax advantages.
• The campaign drew comparisons to rival BHP, which successfully unified its dual listings in 2022, but Rio Tinto's board maintains the costs outweigh the benefits.