Rio May Break Up Its Aluminum Packaging Business

The U.K.’s Daily Telegraph reported that RioTinto plans to sell its aluminum packaging business, possibly by breaking it up. Rio has been defending itself against a hostile stalk from rival BHP Billiton, and focusing on paying for debt as well as most profitable operations through the planned selloff of $10 billon of assets this year. Sources said that Rio intended to sell its Rio Tinto Alcan Packaging division to an American company late last year, but failed because of credit crunch. Rio has appointed Morgan Stanley to find a new buyer, and the latter is likely to break up the division to make it easier for private equity to execute a deal, the newspaper said. Rio Tinto earlier this year announced the sales of a U.S. gold mine and a U.S. silver, gold, zinc and lead mine. It is also considering sales of Rio Tinto Energy America coal operations, Rio Tinto Minerals’ talc business, Rio Tinto Alcan Engineered Products, the Northparkes copper mine in Australia and uranium assets in the U.S. and Australia. Rio couldn’t immediately be reached for comment.