Sale of Alcan assets completed: Rio Tinto

Mining and metals giant Rio Tinto Group says sales of almost all of its Alcan subsidiary's downstream businesses has now been completed, bringing the divestments' total value to more than $11 billion U.S.

Rio Tinto Alcan had sold about $10 billion U.S. of assets by late December, including some engineering and packaging units. The asset disposals were made to help fund Rio Tinto's $38-billion （U.S.） acquisition of Alcan Inc. four years ago.

Rio Tinto's CFO, Guy Elliott, said Tuesday the sale of 61 per cent of European-based Alcan Engineered Products to funds affiliated with New York investment manager Apollo Global Management LLC and Fonds Strategique d'Investissement （FSI）, controlled by the French government, has been completed. He did not disclose the terms.

But the divestment includes the big Ravenswood aluminum rolling mill in West Virgina with a payroll of 1,000 and a producer of aircraft sheet and plate, industry sources said.

Apollo becomes the majority shareholder in AEP with a 51-per-cent stake in a new holding company （for AEP）, with FSI holding 10 per cent and Rio Tinto retaining 39 per cent. Rio Tinto sold AEP's composites division in 2009.

"The closing of our majority divestment in AEP marks Rio Tinto's exit of substantially all Alcan's downstream businesses," Elliott said. "Since 2008, we have completed more than $11 billion U.S. of divestments."

However, Rio Tinto maintains its ownership of U.S.-based cablemaker Alcan Cable.