Canada backs Rio Tinto's Alcan takeover

SYDNEY — Canada has approved Anglo-Australian mining giant Rio Tinto's bid to take over Alcan and create the world's largest aluminium firm, the company said Thursday. Rio Tinto said in a statement to the Australian Stock Exchange that Canadian Industry Minister Jim Prentice cleared the 38.1 billion US dollar takeover on Tuesday after receiving assurances it would benefit Canada. It said Rio Tinto had pledged that the merged entity's headquarters would be in Montreal, with a majority of Canadian-based senior managers from the country. It also made commitments on capital expenditure in Canada and said it would establish a charitable foundation in Canada. The Australian competition regulator and the European Commission have also also cleared the deal. The company hopes to complete the takeover by the end of the year. It would represent the biggest-ever acquisition in the global mining and metals industry, creating a new company to be called Rio Tinto Alcan based in Montreal. Rio Tinto's Australian-listed shares closed up 2.83 Australian dollars (2.55 US) or 2.6 percent at 112.83 after the announcement.