Rare Earth Mega-company Taking Shape
A global concern
While some feel that a potential eastern conglomerate is none of their concern, others are of the impression that the project has the potential for cross-border consequences.
That idea was underlined when in a China Daily report, Li Yizhong, a former minister of industry and information technology and current member of the Chinese People's Political Consultative Conference National Committee, stated that it is plausible that the large groups created through the restructuring may consider transnational operations.
An operation of this size and nature could have a telling effect on a market looking to bounce back from a challenging 12 months. With a number of other international operations — such as Molycorp (NYSE:MCP) and Australia's Lynas Corporation (ASX:LYC) — gaining momentum, investors are bound to be weary of the challenges presented by a mega-company of this scale.Securities Disclosure: I, Adam Currie, hold no direct investment interest in any company mentioned in this article. Related reading: South Korea Reduces Dependence on Chinese Rare Earths China Shakes Up Rare Earth Industry Rare Earth Price Double on Chinese Consolidation Rare Earth “Mega-company” Taking Shape from Rare Earth Investing News
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