No room for packaging in super-sized aluminium group

Rio Tinto and Alcan have agreed to sell off Alcan Packaging as part of the take-over deal announced last week.

Rio Tinto has offered $38.1bn for the Montreal-based firm, which has been accepted by Alcan’s board of directors.

Rio Tinto Alcan, as the company will be known, will focus on mining and metal activities, said a joint statement. This will involve the sale of the packaging business, which was agreed by Alcan.

Dick Evans, Alcan’s president and ceo, said: “Alcan Packaging will have better opportunities for development and success following its divestiture and we will ensure a smooth transition for all involved.”

Alcan Packaging represents 25% of the revenues of the group and generates a $6bn turnover. According to Alcan’s figures, the food and beverage packaging market currently represents roughly 63% of total sales; pharmaceutical and medical 16%; beauty and personal care 13%; tobacco 8%.

The new group will have “significant” bauxite reserves, alumina refining, hydro power, and smelting technology.

Rio Tinto’s chairman Paul Skinner said the transaction combines two leading and complementary aluminium businesses. “We are very pleased that the enlarged aluminium product group, Rio Tinto Alcan, will be headquartered in Montréal and led by the current Alcan ceo, Dick Evans,” said Skinner.