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Rio Tinto Share News (RIO)
Share News for Rio Tinto (RIO)
| Share Price: 3,007.00 | Bid: 3,006.00 | Ask: 3,008.00 | Change: 28.00 (+0.94%) |  | ||||||
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UPDATE 2-HIG to buy Rio Tinto's French alumina plants
Wed, 28th Mar 2012 15:56
PARIS/LONDON, March 28 (Reuters) - Rio Tinto has received a binding offer from private equity
Rio Tinto said on Wednesday it had agreed a period of exclusivity with HIG and would respond to the offer after consulting unions.
Both Rio Tinto and Olivier Boyadjian, managing director of the private equity firm's French unit, declined to provide financial details.
Rio Tinto is selling the three plants - located in Gardanne, La Bathie and Beyrede in southern France - as part of a worldwide plan to scale back its activities in aluminium.
Rio Tinto, the world's third-largest diversified miner, signalled the retreat last October when it unveiled plans to sell 13 assets, only four years after buying aluminium giant Alcan in one of the sector's biggest ever deals.
Rio Tinto had told Reuters on Tuesday that it had seen 'quite a lot' of trade and private equity interest in the aluminium assets. This marks a shift for the private equity industry, which has typically shied away from the capital intensive, long-dated mining sector.
Rio Tinto's speciality alumina business is the largest integrated supplier of non-metallurgical grade alumina, with the three plants in France and one at Teutschenthal in Germany. It employs 730 people.
Alumina, extracted from bauxite ore, is an ingredient in making aluminium but can also be used separately as an abrasive, due to its hardness.
Rio Tinto also operates two aluminium production plants in France, one in Dunkirk on the north coast and one at St Jean de Maurienne in the Alps, the historic heartland of the French aluminium industry.
Rio Tinto's aluminium business, Rio Tinto Alcan, told unions this month it was considering a sale of the St Jean de Maurienne plant as it faces a rise in energy costs when a 30-year-old electricity supply agreement with EDF expires in 2014.
The aluminium producer said it was continuing negotiations with EDF over a new contract.
Like the steel sector, aluminium production in Europe has come under threat from cheaper output elsewhere, notably in China, as well as its relatively small margins compared with other commodities like iron ore.
(Reporting by Jean-François Rosnoblet, Julien Ponthus and Clara Ferreira-Marques; Additional reporting by Gus Trompiz and Elena Berton; Editing by Erica Billingham and Jane Merriman) Keywords: HIG RIOTINTO/
(elena.berton@thomsonreuters.com)(+33149495226)(Reuters Messaging: elena.berton.thomsonreuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
PARIS/LONDON, March 28 (Reuters) - Rio Tinto has received a binding offer from private equity
group HIG for three French alumina plants that are part of an estimated $8 billion of aluminium assets put up for sale last year by the global miner to try to boost margins.
Rio Tinto said on Wednesday it had agreed a period of exclusivity with HIG and would respond to the offer after consulting unions.
Both Rio Tinto and Olivier Boyadjian, managing director of the private equity firm's French unit, declined to provide financial details.
Rio Tinto is selling the three plants - located in Gardanne, La Bathie and Beyrede in southern France - as part of a worldwide plan to scale back its activities in aluminium.
Rio Tinto, the world's third-largest diversified miner, signalled the retreat last October when it unveiled plans to sell 13 assets, only four years after buying aluminium giant Alcan in one of the sector's biggest ever deals.
Rio Tinto had told Reuters on Tuesday that it had seen 'quite a lot' of trade and private equity interest in the aluminium assets. This marks a shift for the private equity industry, which has typically shied away from the capital intensive, long-dated mining sector.
Rio Tinto's speciality alumina business is the largest integrated supplier of non-metallurgical grade alumina, with the three plants in France and one at Teutschenthal in Germany. It employs 730 people.
Alumina, extracted from bauxite ore, is an ingredient in making aluminium but can also be used separately as an abrasive, due to its hardness.
Rio Tinto also operates two aluminium production plants in France, one in Dunkirk on the north coast and one at St Jean de Maurienne in the Alps, the historic heartland of the French aluminium industry.
Rio Tinto's aluminium business, Rio Tinto Alcan, told unions this month it was considering a sale of the St Jean de Maurienne plant as it faces a rise in energy costs when a 30-year-old electricity supply agreement with EDF expires in 2014.
The aluminium producer said it was continuing negotiations with EDF over a new contract.
Like the steel sector, aluminium production in Europe has come under threat from cheaper output elsewhere, notably in China, as well as its relatively small margins compared with other commodities like iron ore.
(Reporting by Jean-François Rosnoblet, Julien Ponthus and Clara Ferreira-Marques; Additional reporting by Gus Trompiz and Elena Berton; Editing by Erica Billingham and Jane Merriman) Keywords: HIG RIOTINTO/
(elena.berton@thomsonreuters.com)(+33149495226)(Reuters Messaging: elena.berton.thomsonreuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
COLUMN-Commodity companies' cost-cutting stampede yet to work: Clyde Russell
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--By Clyde RussellLAUNCESTON, Australia, May 20 (Reuters) - If you ever n[Mon 07:09]
Rio Tinto faces big new union push at its iron ore mines
MELBOURNE, May 20 (Reuters) - Two powerful Australian unions have joined forces to try to take on Rio Tinto Ltd at its iron ore mines, where workers h[Mon 00:16]
UPDATE 1-Australia approves Rio Tinto's $1 bln bauxite mine
* South of Embley project could produce up to 50 mln T a year* Project faces long list of conditions to protect reef* Rio Tinto shares fall 3.1 pct vs[15 May '13]
Australian government approves Rio Tinto Alcan's bauxite mine
SYDNEY, May 15 (Reuters) - The Australian government on Wednesday approved Rio Tinto Alcan's South of Embley bauxite mine and port development proj[15 May '13]
RPT-UPDATE 1-New faces at Rio, BHP woo investors with austerity talk
* BHP says 2014 capex to drop to $18 billion* BHP promises internal competition for capital* Rio sticks to $2 billion cost cut target in 2013* Rio pro[14 May '13]
UPDATE 1-New Zealand/Australia Morning Call-Global markets
-----------------------(08:44 / 2044 GMT)----------------------- Stock Markets S&P/ASX 200 5,220[14 May '13]
UPDATE 1-New faces at Rio, BHP woo investors with austerity talk
* BHP says 2014 capex to drop to $18 billion* BHP promises internal competition for capital* Rio sticks to $2 billion cost cut target in 2013* Rio pro[14 May '13]
COLUMN-African minerals and the illusion of fair value: Kemp
By John KempLONDON, May 14 (Reuters) - "With Africa's economies riding the crest of the global commodities wave, there is an unprecedented opportunity[14 May '13]
