Rio Tinto closes sale of Alcan Packaging to Amcor for $1.948 billion

Rio Tinto, the world's third-largest miner yesterday concluded the sale of the majority of its Alcan Packaging business to Australia's Amcor for a total consideration of $1.948 billion, $77 million less than the initial deal agreed in August. (See: Rio Tinto to sell Alcan packaging to Amcor for $2.025 billion)

The transaction includes Alcan Packaging Global Pharmaceuticals, Global Tobacco, Food Europe and Food Asia divisions, but excludes Alcan Packaging Medical Flexibles operations in the US. The amount has been adjusted to exclude the Medical Flexibles operations and to reflect the actual business performance over the past six months, the company said in a statement.

The sale is subject to the final approval by the US Department of Justice.

Guy Elliott, chief financial officer, Rio Tinto, said that the completion of the transaction is another significant step in the recapitalisation of the company's balance sheet.

The London-headquartered global miner operating as Rio Tinto Plc and Rio Tinto Limited, has so far raised $5.6 billion through asset sales since the beginning of 2009, against the agreed $7.2 billion, despite a difficult environment created by the global financial crisis. In 2008, the company had sold assets worth $3.1 billion.

Recently divested assets include Ningxia (aluminium), Potasio Rio Colorado (potash), Corumbá (iron ore), Jacobs Ranch (coal), Alcan Composites and the Cloud Peak IPO.