Alcan Packages Sale as Single Division

Aluminium giant Rio Tinto has announced it will sell Alcan's packaging division as a single business.

The news follows speculation the packaging company would be splintered for sale after a merger with the mining giant following a bid placed last week.

Melbourne-based Rio Tinto has placed a $38.1bn bid for Canadian aluminium company Alcan, in a deal that could create the world's largest aluminium company.

The proposed takeover has led packaging industry analysts to speculate on how the division would be splintered in order to attract more buyers, as Rio Tinto focuses on the more lucrative aluminium activities within the business.

The packaging division, which has 31,000 employees in 130 production facilities around the world, posted C$6bn in sales and C$550mn in profits last year.

Company spokeswoman Anik Michaud confirmed on Friday the division would be sold as a whole.

The takeover bid, subject to shareholder approval, is expected to close in the fourth quarter of this year.
Source: packaging-technology