Rio Tinto, Alcan merger clears Canadian government hurdle

By Lisa Kerner

Charlotte, N.C., Aug. 8 - The government of Quebec approved Rio Tinto plc's offer for Alcan Inc., noting that the deal meets the terms of a 2006 continuity agreement between Alcan and the government as part of a U.S. investment program for the Saguenay-Lac-Saint-Jean region.

"As we move forward together, we are confident that the continued and expanded commitments to Quebec will ensure sustainable growth for the province's aluminum industry," Rio Tinto chief executive Tom Albanese said in a company news release.

"The announcement by the government of Quebec means we have satisfied one of the conditions of our offer, and brings completion one step closer."

On July 12, Rio Tinto offered to acquire Alcan for $101 per share in an all-cash transaction valued at $38.1 billion. Alcoa Inc. withdrew its offer for Alcan as a result. Alcan had rejected the New York-based aluminum manufacturer's offer to acquire the company in a cash and stock deal valued at $33 billion.

Rio Tinto's indirect wholly owned subsidiary Rio Tinto Canada Holding Inc. began its offer for Alcan on July 24. The offer is open until Sept. 24, and the transaction is expected to close in the fourth quarter.

Montreal-based Alcan is a materials company specializing in bauxite mining, alumina processing, primary metal smelting, power generation, aluminum fabrication, engineered solutions and specialty packaging.

Rio Tinto is a mining group based in London.

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