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| Rio Tinto and Alcan will create largest global producer of aluminium  Rio Tinto, an international mining company headquartered in the UK, and Canadian aluminum giant Alcan announced they have reached an agreement for Rio Tinto to make an offer to acquire all of Alcan's outstanding common shares for US$101 per common share in a recommended, all cash transaction. The offer represents a total equity consideration for Alcan of approximately US$38.1 billion. The combined aluminium product group, to be named Rio Tinto Alcan, will be a new global leader in the aluminium industry.Overall anticipated post tax synergies from the transaction are expected to be around $600 million per year. The board of Alcan has unanimously recommended that Alcan shareholders should accept the offer. Rio Tinto expects to file the offer and takeover bid circular containing the full terms, conditions and other details of the offer with the Canadian Securities regulatory authorities and the Securities and Exchange Commission of the United States on or about 23 July 2007. The offer is expected to close in the fourth quarter of 2007. The acquisition of Alcan will be financed by Rio Tinto through newly committed bank facilities underwritten by The Royal Bank of Scotland, Deutsche Bank, Credit Suisse, and Société Générale. The offer will not be conditional on financing. Rio Tinto's goal is to maintain a single A rating. The commitment to a progressive dividend policy will be maintained. The existing Rio Tinto buyback programme will be discontinued. Photo: Alcan write your comments about the article :: © 2007 Construction News :: home page |