Alcoa would sell assets to win approval for Alcan bid

Alcoa Inc is willing to sell assets to win regulatory approval for its US$26.9 billion Alcan Inc bid, which would create the world`s largest aluminium producer.

The companies` assets overlap the most in the aerospace and automotive industries, chief executive officer Alain Belda said on Thursday at a presentation web cast from Dublin.

"We are prepared to make the necessary level of divestitures to get the deal approved," Belda said, without specifying which business regulators might require New York-based Alcoa to sell.

Alcoa would review Montreal-based Alcan`s packaging business is the deal were completed, Belda said.

Alcoa said on April 25 that it may sell its packaging and electronics unit with sales of about US$4.8 billion to concentrate on more-profitable aluminium production.

If the business is profitable, "I have no reason to sell it," Belda said.  If it isn`t, "we will have to look at it," he said.

The companies held talks for more than two years to create a "winning strategy," Belda said, adding that he "always thought it was a very good combination."

The tie-up would create a company with twice the capacity of OAO Russian Aluminum (RUSAL), which completed a three-way merger in March to top Alcoa as the world`s largest producer.

Alcoa and Alcan have been losing market share to producers in Russia and China as aluminum prices doubled the past four years.