Rio Tinto to buy Alcan for $38 billion

Rio Tinto to buy Alcan for $38 billion

James Politi / New York/London, July 12, 2007

Rio expects $600m savings a year by removing operational overlaps and cost cuts.

Rio Tinto Zinc on Thursday launched a recommended cash offer for Alcan, valuing the Canadian aluminium company at US$38.1 billion or $101 a share, trumping an earlier hostile bid from Alcoa of the US.

The offer represents a 32.8 per cent premium to Alcoa