Rio Tinto gets nod for Alcan takeover

RIO Tinto has won Canadian regulatory approval for its $US38.1 billion ($42.84 billion) takeover of Alcan Inc. "This important step recognises that we have committed to bring significant benefits to Canada as a result of this transaction," Rio Tinto chief executive Tom Albanese said. Rio Tinto, the world's third largest mining company, is offering $US101 a share for the Canadian aluminium producer, valuing Alcan at US$38.1 billion. Buying Alcan will transform it into the world's largest producer of aluminium. "Rio Tinto has been an investor in Canada for decades and is dedicated to growing the combined Rio Tinto Alcan presence, which will be headquartered in Canada and will be positive for Canadian jobs, investment and research and development," Mr Albanese said. The mining giant has given undertakings that the new global headquarters of the aluminium producer will be in Montreal, ensuring a majority of Canadian-based senior managers are Canadian. Rio Tinto has also made major capex commitments on projects such as the AP50 pilot plant in Quebec and the Kitimat modernisation in British Columbia. "In addition to the chief executive of Rio Tinto Alcan Dick Evans, Rio Tinto will be appointing two of the Canadian non-executive directors of Alcan to its board," the company said. The company will also make significant contributions to Canadian communities, which includes setting up a major charitable foundation. The takeover offer is due to expire at 6pm Canadian Eastern Time on October 23.