Tuesday, July 6, 2010

Rio Tinto (NYSE:RTP) Fully Divests of Alcan Packaging

The sale of what remained of the beauty and medical flexibles businesses of Rio Tinto (NYSE:RTP) ends their ownership in Alcan Packaging.

Rio sold the medical business to Amcor for $66 million, while the beauty business was sold to Sun European Partners LLP for an undisclosed amount.

The beauty business probably brought a nice sum to Rio, at it generated $932 million in revenue in 2008, while the medical business had revenue of close to $115 in the U.S.

After selling off the parts of Alcan Packaging, Rio had brought in over $3.2 billion as a result.

Including all their assets they've been divesting of, Rio has sold over $10 billion since Janurary 2008.

All this is in direct response to their acquisition of Alcan for $38.1 billion, which they're using the proceeds to pay down debt related to the acquisition.

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