MercoPress. South Atlantic News Agency

Rio Tinto to become world's largest producer of aluminum

Alcan and Rio Tinto's directors celebrate the agreement

Anglo-Australian mining group Rio Tinto announced Monday that its bid to buy Canada's Alcan for 38.1 billion US dollars has been approved by US antitrust authorities.

Under the terms of the deal, Rio Tinto, which is listed on both the London and Australian stock exchanges, is to pay 101 US dollars for each Alcan share. Alcan had rejected a 27 billion US dollars hostile takeover bid from US miner Alcoa on the grounds that it undervalued the firm. Once the deal is completed Rio Tinto, currently the world's third largest mining company, would become the largest producer of aluminum. Record metal prices have prompted consolidation in the industry. The approval comes three weeks after Rio Tinto received confirmation that the takeover met the requirements of the continuity agreement between Alcan and the government of Quebec. That agreement was signed in 2006 between Alcan and the government of Quebec as part of a 1.8 billion US dollars investment program for the Saguenay-Lac-Saint-Jean region. Rio Tinto discovers, mines, processes and supplies a wide range of metals and minerals with operations and activities located worldwide: Australia, North America, South America, Asia, Europe and Southern Africa. Major products include aluminum, copper, diamonds, energy products, gold, industrial minerals (borates, titanium dioxide, salt and talc), and iron ore. An extraordinary General Meeting of Rio Tinto plc and Rio Tinto Limited has being convened for the purpose of approving the offer by a subsidiary of Rio Tinto plc for Alcan. The extraordinary General Meeting of Rio Tinto plc will be held 14 September in London and of Rio Tinto Limited on 28 September 2007, in Melbourne.