Rio Tinto clears hurdle in Alcan offer

Rio Tinto Ltd has received confirmation from the government of Quebec that its $US38 billion ($A44.51 billion) offer for Alcan Inc meets the requirements of the continuity agreement between itself and the Canadian aluminium producer. The agreement between the government and Alcan was signed in 2006 as part of a $US1.8 billion ($A2.11 billion) investment program for the Saguenay-Lac-Saint-Jean region. Chief executive Albanese said the takeover was now one step closer to becoming reality. "Rio Tinto has been an investor in Quebec and Canada for decades and is committed to growing the combined Rio Tinto Alcan presence, particularly in Quebec," Mr Albanese said. "The announcement by the government of Quebec means we have satisfied one of the conditions of our offer, and brings completion one step closer." Rio Tinto said it had satisfactorily demonstrated to the board of Alcan and to the government of Quebec that there was no reasonable basis to believe that there would be a diminishment of Alcan's commitment to the economy and society of the region or a direct or indirect negative impact on the economy and society of Quebec. At 1021 AEST on Wednesday Rio Tinto's shares were up 80 cents at $87.80.