Rio accepts Alcan Packaging offer

LONDON (SHARECAST) - Mining giant Rio Tinto has accepted a $2.025bn offer for its Alcan Packaging pharmaceutical, tobacco and food divisions from the packaging group Amcor as it continues its programme of asset sales to ease its debt pile. The proposed transaction, which Rio received in August, has been cleared by the European Commission. Rio now awaits clearance from the US Department of Justice. Rio has announced asset sales of $10.3bn since February 2008, including the sale of its Ningxia aluminium operations and its Potasio Rio Colorado potash business. Rio incurred huge debts when it bought Canadian aluminium firm Alcan for $38bn in 2007, ahead of the global economic crisis.