Rio Tinto receives $340 million binding offer for Luzenac
23 Feb 2011
Anglo-Australian mining group Rio Tinto today said that the Imerys Group, global leaders in the supply of industrial minerals, had made a binding offer to acquire its talc business, Luzenac, for an enterprise value of $340 million.
Luzenac, which reported 2009 revenues of $340 million, is the world's biggest maker of talc, a mineral used in animal feed, cosmetics, fertilisers, paints, pharmaceuticals, plastics and talcum powder. It has industrial operations in Europe (France, Italy, Spain, Austria, Belgium), North America (USA, Canada) and Asia (Australia, Japan), it has high-quality reserves on these three continents
Rio's divestment of Luzenac has been interpreted as part of its strategy to divest smaller units in order to focus on its larger and more profitable businesses.
For Imerys the acquisition would lead to enlarging its portfolio notably in polymers, paints, ceramics and paper, enabling the French group to become a significant player.
"A period of exclusivity with Imerys has been agreed, and Rio Tinto will respond to this binding offer following consultation with the relevant European works councils," Rio said in a statement.
Guy Elliott, chief financial officer, Rio Tinto said, "The successful sale of our global talc business would deliver good value to our shareholders and remains aligned with our strategic focus on large scale assets. As a leading supplier of industrial minerals, Imerys is well positioned to enable the ongoing success of the talc business."
