Rio Tinto Sells 61% of Alcan Engineered Products to Global Investors

Mining giant Rio Tinto said Tuesday that it has completed the divestment of 61 percent of French aluminum company Alcan Engineered Products to investment funds affiliated with Apollo Global Management and the Fonds Stratégique d’Investissement （FSI） for an undisclosed price.

Apollo is now the majority shareholder in AEP with a 51 percent stake in a new holding company for AEP. French firm FSI holds 10 percent, while Rio Tinto holds a 39 percent of the company.

“The closing of our majority divestment in AEP marks Rio Tinto’s exit of substantially all downstream businesses. Since 2008, we have completed divestments in excess of US$11 billion,” Rio Tinto’s chief financial officer Guy Elliott said.

In 2010, Rio Tinto completed divestments of US$4.2 billion comprising Alcan Packaging Food Americas, Alcan Packaging global Pharmaceuticals, global Tobacco, Food Europe and Food Asia divisions, Vickery （Coal & Allied）, Maules Creek （Coal & Allied）, Alcan Beauty Packaging, Alcan Medical Flexibles and Cloud Peak Energy.

Alcan Establishes Cable Operations in Mexico

Also on Tuesday, Alcan Cable announced the creation of a new legal entity for its cable operations in Mexico. “The formation of Alcan Cable de México highlights our long term commitment to the Mexican market and positions us as an innovative and recognized leader in the aluminum electrical cable market in Mexico,” said Jack Miller, President, Alcan Cable.

“The creation of a corporate presence in Mexico will allow us to expand our sales and technical support to the major metropolitan areas of Guadalajara, Monterrey and DF and facilitate business transactions in the local currency,” said Claudia Day, Vice President, Distribution, Alcan Cable