Rio Tinto offers US$ 38.1 billion for Alcan

Archiv – International mining group Rio Tinto and Canadian aluminium producer Alcan have reached an agreement for the former to make an offer to acquire all of the latter for around US$ 38.1 billion (Euro 27.6 billion). Canada | International mining group Rio Tinto and Canadian aluminium producer Alcan have reached an agreement for the former to make an offer to acquire all of the latter for around US$ 38.1 billion (Euro 27.6 billion). The offer represents a premium of 65.5% to Alcan’s all-time high share closing price.
The combined company will boast significant bauxite reserves, as well as alumina refining, hydro power and smelter technology resources. Rio Tinto’€™s Chairman Paul Skinner comments: ’This transaction combines two leading and complementary aluminium businesses, and is a further step in Rio Tinto’€™s strategy of creating shareholder value through investing in high-quality, large-scale, low-cost and long-life assets in attractive sectors.’€™
The companies’€™ plan is to create a new global aluminium division called Rio Tinto Alcan (RTA), which would be based in Montreal and led by Alcan’€™s current Chief Executive Dick Evans. RTA would be the largest global producer of aluminium and bauxite based on current production, with a defined pathway through the commissioning of Gove and the committed expansion of Yarwun to becoming the largest producer of alumina.