Rio's bid for Alcan jumps Quebec hurdle

RIO Tinto has passed the first regulatory hurdle in its $US38 billion ($44.51 billion) planned takeover of Canadian aluminium Alcan Inc. Rio received confirmation from the Quebec Government that its offer for Alcan 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 investment program for the Saguenay-Lac-Saint-Jean region. Chief executive Tom Albanese said the takeover was now one step closer to 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 Quebec Government that there was no reasonable basis to believe that there would be a diminution of Alcan's commitment to the economy and society of the region.