Rio Tinto, the world’s third largest miner by revenues, has won U.S. antitrust authority’s approval for its $38.1bn takeover of Alcan Inc.
Alcan board has already accepted the bid and under the terms of the deal, Anglo-Australian mining group Rio Tinto, which is listed on both the London and Australian stock exchanges, is to pay $101 for each Alcan share.
The antitrust authority approved the deal after Rio Tinto received confirmation from government of Quebec about the continuity of the deal, which was earlier signed between Alcan and the government of Quebec. For the Antitrust nod, revival of the deal was necessary as for the Rio Tinto, Quebec’s Saguenay-Lac-Saint-Jean region was the main attraction to propose a much high proposal for the Alcan.
Earlier Alcan had rejected a $27bn hostile takeover bid from US miner Alcoa on the grounds that it undervalued the firm.
The successful deal will make Rio Tinto the largest maker of aluminium and bauxite; however, the Antitrust authority’s approval without any serious apprehensions would play a major role in it.
Via: IHT
