Rio Tinto says its offer for Canadian aluminium company Alcan has been successful. It has received almost 80% acceptances for the offer as well as guarantees for a further nearly 6%. The deadline for other shareholders to accept has now been extended by two more weeks.
Rio Tinto, which is Anglo-Australian, is paying a total of 26.7 billion euros. The takeover will make Rio Tinto the world’s largest producer of aluminium, smelting 4.4 million tons annually. It will overtake Russia’s Rusal, which took the number one spot when it merged with SUAL, and the alumina assets of Swiss commodities trader Glencore in March.
This the latest in a series of takeovers in the mining industry prompted by record metal prices as demand soars in fast developing economies such as China and India. Rio Tinto made their bid after Alcan rejected a 19 billion euro hostile takeover attempt by the US miner Alcoa in May this year.