Rio Tinto dumps its Chinese investor

Metals and mining giant Rio Tinto (RTP) will walk away from a multi-billion dollar investment from China's Chinalco. Instead of closing its transaction with the mainland-based company, it will raise money and form a venture with rival BHP Billiton (BHP).

Chinalco would have put $19.5 billion into Rio Tinto in exchange for 18 percent of the company. Rio needs the money to improve its balance sheet. The transaction would have given China access to ore and metals that are critical to the economic expansion of the world's most populous nation.