Aug 18 2009
Rio Tinto has received a binding offer from Amcor to acquire the majority of the Alcan Packaging businesses, comprising Alcan Packaging global pharmaceuticals, global tobacco, food Europe and food Asia divisions, for a total consideration of US$ 2.025 billion. Rio Tinto recently announced the sale of the Alcan Packaging food Americas division to Bemis Company, Inc for US$1.2 billion. The remaining Beauty packaging division will be divested separately.
A period of exclusivity with Amcor has been agreed, and Rio Tinto will respond to this binding offer following consultation with the relevant European works councils.
"We have already agreed to asset sales of US$6.6 billion over the last 18 months, despite the challenging financial markets," said Guy Elliott, chief financial officer, Rio Tinto. "We believe Amcor's offer is in the interests of all stakeholders. These businesses would be acquired by a leading player in the global packaging sector that is very well placed to enable ongoing success of the businesses. In addition, we believe that this offer would deliver good value to Rio Tinto shareholders."
Alcan Packaging global pharmaceuticals, global tobacco, food Europe and food Asia divisions have approximately 14,000 employees at 80 locations in 28 countries. In 2008, these businesses generated revenues of US$4.1 billion, accounting for 62 per cent of Alcan Packaging's total revenues. For the first six months of 2009, the businesses generated total revenues of US$1.8 billion.
Completion of the potential transaction would be subject to customary closing conditions, including regulatory approvals in Europe and in the United States. In addition, the binding offer purchase price and consideration received is subject to certain adjustments, including an adjustment based on the financial performance of the Alcan Packaging businesses and the value at closing of certain transferred liabilities.
During 2008, Rio Tinto announced divestments comprising the Greens Creek mine in Alaska for US$750 million, its interest in the Cortez operation in Nevada for US$1.695 billion and the Kintyre uranium project in Western Australia for US$495 million. Announced transactions in 2009 comprise the Group's interest in the Ningxia aluminium smelter in China for US$125 million, its potash assets and Brazilian iron ore operations for US$1.6 billion, its Jacobs Ranch coal mine in the United States for US$761 million and Alcan Packaging Food Americas to Bemis Inc for US$1.2 billion. The divestment programme continues for other assets identified for sale, including Alcan Engineered Products.