Rio Tinto gets Ottawa's approval for Alcan acquisition

Ottawa has given its approval of Rio Tinto's takeover of Montreal-based aluminum company Alcan Inc. Rio Tinto said Thursday that Industry Minister Jim Prentice gave his nod to the $38.1-billion offer, which is due to expire on Oct. 23. Rio Tinto, a London, England-based mining giant, said it obtained Investment Canada Act approval by demonstrating that its acquisition of Alcan would be of net benefit to Canada. "This important step recognizes that we have committed to bring significant benefits to Canada as a result of this transaction," said Rio Tinto's CEO Tom Albanese. Rio Tinto said it has made several commitments as part of the deal, including establishing the new global aluminum leader's headquarters in Montreal, ensuring that a majority of Canadian-based senior managers are Canadian, and ensuring "robust" R&D employment and expenditures here. Rio Tinto has also made major capital expenditure commitments on projects such as a new pilot plant in Quebec and the Kitimat modernization in British Columbia.