Rio Tinto recently announced that it has completed the sale of its Alcan Packaging global Pharmaceuticals, global Tobacco, Food Europe and Food Asia divisions to Amcor for a total consideration of $1,948 million.
“The completion of this complex transaction is another significant step in the recapitalization of our balance sheet,” said Guy Elliott, chief financial officer for Rio Tinto. “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.”
Since February 2008, Rio Tinto has announced asset sales of $10.3 billion. In 2008, Rio Tinto completed divestments totaling $3.1 billion. In 2009, Rio Tinto agreed to asset sales of $7.2 billion and completed $3.6 billion of these. Completed transactions in 2009 include Ningxia (aluminum), Potasio Rio Colorado (potash), Corumbá (iron ore), Jacobs Ranch (coal), Alcan Composites and the Cloud Peak IPO.
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