Rio Tinto gets binding offer for 61% of Alcan

Rio Tinto has received a binding offer from funds affiliated with Apollo Global Management L.P. (Apollo) and the Fonds Stratégique d'Investissement (FSI) to buy a 61% stake in Alcan Engineered Products (AEP), excluding the Cable Division. The transaction follows the successful divestment last year of the composites division of the engineered products business. Under the terms of the transaction, Apollo will become the majority and managing shareholder in AEP with a 51% stake in a new holding company for AEP, with the FSI holding 10%. Rio Tinto will hold a 39% stake. Rio Tinto will respond to this binding offer following consultation with the relevant employee representatives. Guy Elliott, Chief Financial Officer, Rio Tinto, said, "This potential sale of a majority stake to Apollo and FSI is in line with our strategy of divesting non-core assets of Rio Tinto Alcan. When this transaction is completed, we will have exited all downstream businesses, except Alcan Cable. We look forward to participating in the upside potential of AEP, both as a minority shareholder and key supplier to the business."adidas