Rio Tinto's $38 billion offer for Alcan gets regulatory approval
19 Oct 2007
The $101 per share offer values the Canadian aluminium producer Alcan at $38.1 billion. The offer is set to expire on October 23, Rio Tinto said in the release.
The company said, "All regulatory approvals required for the global closing of the proposed acquisition of Alcan by a subsidiary of Rio Tinto have now been received. The Offer is scheduled to expire at 6:00 pm Canadian Eastern Time on October 23, 2007, and Alcan Inc. shareholders are encouraged to tender their shares to the Offer as soon as possible." Alatory approvals required for the global closing of the proposed acquisition of Alcan by a subsidiary of Rio Tinto have now been received. The Offer is scheduled to ex InL Augustpirheirto the Offer as soon as possible.
Late in August, the US anti trust authorities had approved the merger of Alcan with Rio Tinto, the world''s third biggest mining company. Rio Tinto said the deal won approval from Canadian regulators yesterday.
In July Rio Tinto and Alcan had announced a friendly merger, after Alcan rebuffed Alcoa''s hostile $27-billion takeover attempt (See: Update: Alcan to merge with Rio Tinto under $38.1 billion deal). The merger has catapulted Rio Tinto''s aluminium operations from being mid-scale and a geographically skewed into the largest producer of aluminium in the world, eclipsing Russia''s UC Rusal, which in a three-way merger between Russian firms Rusal, Sual and Swiss company Glencore last October, had left Alcoa as the world''s second largest aluminium producer.
Analysts say, the merger between the two has made Alcoa a likely takeover target.(See: Rio Tinto''s Alcan acquisition turns spotlight on Alcoa falling to BHP Billiton)
The international mining group headquartered in the UK, combines Rio Tinto plc, a London-listed company, and Rio Tinto Limited, listed on the Australian Securities Exchange.