Rio Tinto passes first hurdle in take-over of Alcan

Rio Tinto has cleared the first regulatory hurdle in its take-over of Canadian producer Alcan by winning approval from the government of Quebec. Alcan signed in 2006 a continuity agreement with the state of Quebec, in essence providing for security of continued investment in the state in the event of a take-over by another party. The government of Quebec has now announced it has accepted that Rio’s take-over of Alcan conforms to that agreement. "Rio Tinto has been an investor in Québec and Canada for decades and is committed to growing the combined Rio Tinto Alcan presence, particularly in Québec. The announcement by the Government of Québec means we have satisfied one of the conditions of our offer, and brings completion one step closer," commented Rio Tinto's chief executive, Tom Albanese.