Wednesday, February 3, 2010

Rio Tinto (NYSE:RTP) Sells Alcan Packaging Unit

Rio Tinto

Rio Tinto (NYSE:RTP) announced it has finished selling a portion of its Alcan Packaging business to Australian-based Amcor for $1.95 billion.

Looking to build up its cash reserves and reduce its debt load, Rio Tinto has been selling some of the assets of Alcan, which it had acquired in 2007 for $38 billion.

Some of the divisions sold include food from its Asian and European units, tobacco, and pharmaceuticals.

Rio Tinto CFO Guy Elliott, said this:

“Since the start of 2009, we have completed divestments of $5,6-billion despite a difficult environment created by the global financial crisis. 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.”

In 2009 Rio Tinto was busy selling a number of its divisions including the Alcan Composites, Corumbá iron-ore project, Ningxia aluminium project and Jacobs Ranch coal project.

Some of the other sales waiting to be finished are Maules Creek and Alcan Packaging Food Americas.

Rio Tinto

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