Alcan, Rio Tinto Integration Could Take Two Years

It might be two years before Rio Tinto's $38.1 billion friendly takeover of Alcan is fully integrated, Alcan Chief Executive and President Dick Evans told Dow Jones Newswires. "Typically, something with this size, you're looking at two years; in this particular case, because there is relatively little overlap of businesses, it could go even a bit quicker than that," he said. Evans, who will head up the combined companies' aluminum business out of Montreal once the deal closes, said it will be up to Rio Tinto to figure out a timeframe for reviewing the combined portfolio and, ultimately, the allocation of capital for projects in the pipeline. "They want to start with this as soon as they're done with this transaction," Evans said."There are certain major decisions that we (won't) take independently without consulting with Rio. Having said that, they are very much aware of the pipeline of our major projects and they're very supportive of it - that's one reason why they bought us." Evans comments come after Alcan released second-quarter results - a trading period hit by a strong Canadian dollar. Evans said currency fluctuations do have an adverse effect on earnings, especially a strong Canadian dollar when it comes to country-specific liabilities, such as pension commitments. However, this quarter could be the last time Alcan reports as an independent company, meaning its earnings will now be incorporated with Rio Tinto, a London-listed company that reports earnings semi-annually and in U.S. dollars.