The Live Wire



Press Release

Rio Tinto makes a recommended all cash offer for Alcan

12 July 2007

  • Cash offer price of US$101 per common share values Alcan at US$38.1 billion.
  • Excellent fit with Rio Tinto's overall asset portfolio, strategy and value focus.
  • Creation of a new global leader in the aluminium industry to be called Rio Tinto Alcan.
  • Alcan's board of directors unanimously recommends acceptance of the offer and states that Rio Tinto's proposal fully meets the requirements of the Continuity Agreement.
  • Global headquarters of Rio Tinto Alcan to be in MontrĂ©al, led by current Alcan chief executive Dick Evans.
  • Rio Tinto and Alcan agree to divest Alcan Packaging business.

Montréal, Melbourne and London (12 July 2007) - Rio Tinto and Alcan today 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 offer represents a premium of 65.5 per cent to Alcan's all time high closing share price of US$61.03 on 4 May 2007 prior to the Alcoa offer. It also represents a premium of 32.8 per cent to the value of Alcoa's current offer of US$76.03, based on Alcoa's closing share price on 11 July 2007.

The combined aluminium product group, to be named Rio Tinto Alcan, will be a new global leader in the aluminium industry with large, long life, low cost assets worldwide. The combined Group's access to significant bauxite reserves, competitive alumina refining, low cost hydro power, leading smelter technology, and a deep and diverse talent pool provides an excellent position to capitalise on the favourable demand fundamentals of the aluminium industry. Rio Tinto Alcan will also have a strong portfolio of growth projects.



Press releases, papers and documents published on this page are the intellectual property of an organisation unrelated to Central Lobby. We promote their parliamentary and political campaigning activities as they are subscribers to the Central Lobby service.

As such, Central Lobby does not edit, endorse, or attempt to balance the opinions expressed on this page. The content of press releases and other such types of content are the responsibility of the originating organisation.

More from Dods

© Dods Parliamentary Communications Ltd