French regulator approves Rio's Alcan acquisition

Rio Tinto Limited (RIO) received approval from the French government under the French foreign investment regulations for the proposed $43 billion acquisition of Alcan Inc. This follows yesterday's approval from The Australian Competition and Consumer Commission ("ACCC"). The approval was confirmed following a meeting between Christine Lagarde, French Minister of the Economy, Finance and Employment and Paul Skinner, chairman of Rio Tinto. Paul Skinner said he underlined Rio long- term commitment to France, noting that France providers an attractive investment environment. "We have had a very constructive and positive dialogue with the French Government over the past two months," he added. On Wednesday Rio announced that it has received The Australian regulator said it would not intervene in the planned acquisition, given that the deal would not result in a likely substantial lessening of competition. The announcement came only days after the company received shareholder approval for the transaction on 28 September 2007. Receipt of this latest, as well as other regulatory clearances, is a condition to Rio Tinto's offer to acquire the outstanding shares in Alcan. The company said that it is shooting for the completion of the transaction in the fourth quarter. At 1117 AEST, Rio Tinto was sitting $1.42 higher at $107.71.