Rio completes asset sale to Amcor MATHEW MURPHY February 2, 2010 - 10:04AM
Global miner Rio Tinto has completed the sale of Alcan's packaging, pharmaceuticals, tobacco and food divisions to Amcor for $US1.9 billion ($2.1 billion).
The sale, announced last August, continues Rio's fire sale of assets, which has reached $US5.6 billion since the start of last year.
Rio has also secured agreements to sell Alcan Packaging Food Americas and the Maules Creek coal mine in NSW.
The sale of Alcan Packaging Medical Flexibles operations in the US is subject of an ongoing market review by the US Department of Justice.
Rio bought Alcan in 2007 but was forced to ditch assets in order to reduce its heavy debt burden. Most analysts believe Rio paid too much for Alcan, buying the firm when global metal prices were at record highs.
Guy Elliott, Rio's chief financial officer, said the finalised sale would strengthen the miner's cash position to take advantage of future investment opportunities.
''The completion of this complex transaction is another significant step in the recapitalisation of our balance sheet,'' he said. ''These proceeds, together with the proceeds from our successful rights issues and strong underlying cash flows, provide us with the flexibility to pursue value adding investment opportunities as they arise.
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