US antitrust regulator approves Rio Tinto''s acquisition of Alcan

27 Aug 2007

Anglo-Australian mining group Rio Tinto that entered in to a friendly acquisition of Canadian aluminium firm Alcan for $101 per share, in a deal valuing the Canadian company for $38.1-billion, has been approved by US antitrust authorities. (See: Update: Alcan to merge with Rio Tinto under $38.1 billion deal)

Alcan consented to the deal with Rio Tinto after rejecting a $27-billion hostile takeover bid from US aluminium firm Alcoa on the grounds that it undervalued the firm. (See: Alcan rejects Alcoa''s $27 billion bid, opens talks with rival bidders)

The acquisition will propel make Rio Tinto into the largest maker of aluminium and bauxite.