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Last Updated: Wednesday, 24 October 2007, 09:38 GMT 10:38 UK
Rio Tinto secures Alcan takeover
Rio Tinto plant in Australia
Record metal prices has led to mergers in the mining sector
Anglo-Australian mining group Rio Tinto has said its $38.1bn (19bn) bid to buy Canada's Alcan has been successful - securing almost 80% of Alcan's shares.

It has also been guaranteed a further 6% holding in the Canadian aluminium firm and has extended the deadline to other shareholders.

Rio Tinto, which is listed on both the London and Australian stock exchanges, is paying $101 for each Alcan share.

The takeover had already been approved by US antitrust authorities.

"We have been working towards our offer becoming unconditional and have now passed the final milestone," said Rio Tinto chairman Paul Skinner.

The deal will make Rio Tinto the world's largest producer of aluminium and bauxite.

Record metal prices have led to number of takeovers in the global mining industry.

"The outlook for aluminium remains strong and the prospects for Rio Tinto Alcan are excellent," said Rio Tinto chief executive Tom Albanese.

In May this year Alcan rejected a $27bn hostile takeover bid from US miner Alcoa on the grounds that it undervalued the firm.

SEE ALSO
Rio Tinto's Alcan deal approved
27 Aug 07 |  Business
Rio Tinto makes $38.1bn Alcan bid
12 Jul 07 |  Business
Alcan rejects hostile Alcoa offer
22 May 07 |  Business

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