Rio secures approval for Alcan takeover

Rio Tinto has secured approval from Industry Canada for its $38.1 billion takeover of Alcan Inc, only days before the offer to Alcan shareholders is due to expire.

Canada’s Industry Minister has approved the acquisition under the Investment Canada Act and according to Rio Tinto chief executive, Tom Albanese, “This important step recognizes that we have committed to bring significant benefits to Canada as a result of this transaction”.

Alcan is headquartered in Montreal and Rio Tinto has agreed a number of undertakings in relation to Alcan’s operations and employees in Canada.

These include establishing a new global headquarters in Montreal and ensuring that the majority of Canadian based senior managers are Canadian.

There is also a commitment to create a shared services hub in the city where the group will be making a substantial investment in research and development.

Rio Tinto is also committed to large capital expenditure on a number of Canadian projects, including the AP50 pilot plant in Quebec and Kitimat in British Columbia, where a modernisation programme is planned.

Finally, community projects will also be developed including a major charitable foundation that will demonstrate Rio Tinto’s dedication to Canada.