Rio Tinto receives Canadian approval for Alcan takeover

SYDNEY - Rio Tinto, the world's third largest mining group, said Thursday it has received approval from Canada's Minister of Industry Jim Prentice for its proposed 38.1-billion-US-dollar takeover of Canadian aluminium group Alcan Inc. The group said it obtained approval for the deal under the Investment Canada Act by demonstrating the deal will be of positive net benefit to Canada. It said approval was conditional on a number of undertakings including establishing the new global aluminium leader's headquarters in Montreal, ensuring that a majority of Canada-based senior managers are Canadian, creating a shared services hub in Montreal and ensuring robust research and development employment and expenditures. Rio Tinto said it also made capital expenditure commitments on projects such as the AP50 pilot plant in Quebec and the Kitimat modernization in British Columbia. In addition to the chief executive of Rio Tinto Alcan, Dick Evans, Rio Tinto said it will be appointing two of the Canadian non-executive directors of Alcan to its board. Rio Tinto's offer of 101 US dollars per share, being made through Rio Tinto Canada Holding Inc, is due to expire on Oct 23.