Rio Tinto may cooperate with Utkar after acquiring Alcan

After the acquisition of Alcan, Rio Tinto is likely to become a partner of the aditya birla group in India. The two jointly hold a stake in the joint venture Uktal alumina international. Utkar operates a bauxite mine and a new alumina refinery in Orissa, India.


Alcan had earlier decided to withdraw from Utrecht Alumina International because of its limited influence in participating in important company decisions. Alcan has set June as the deadline for the sale of equity.

Insiders revealed that Alcan's acquirer, Rio Tinto, hopes to continue holding a 45% stake in Utkar.

A Rio Tinto spokesman said, "We have just submitted an offer and are still awaiting approval from shareholders. Therefore, we do not currently want to comment and comment on individual projects. Once shareholders accept the offer, we will check it out."

According to sources, Rio Tinto's acquisition of Alcan is largely determined by the future of China and India.

Rio Tinto's chairman, Tom Albanese, recently said that the merger will result in the world's largest aluminum company, and the new company is temporarily named Rio Tinto. The new company will benefit from the rapid economic growth of China and India. Rio Tinto’s acquisition of Alcan still requires regulatory approval.

Albanese said that India's growth rate is five years behind China. But by 2015, the gross domestic product of both countries is expected to increase by nearly 9%.

Utkar Alumina International was founded in 1992 by a joint venture between India's Hindalco, Alcan and Norwegian Hydro. Indal holds a 20% stake, while indal is now part of Hindalco Industries, Alcan holds a 35% stake in Utkar and Hydro holds 45%. Subsequently, Hydro sold the shares it held to two other partners.

Rio Tinto has been looking for acquisition targets in India. Rio Tinto once had a great interest in Sesa Goa, India's largest iron ore exporter, but did not bid. Japan’s second-largest trader, Mitsui & Co., holds a 51% stake in Sesa Goa and is the largest holding company.

Rio Tinto's biggest competitor, BHP Billiton, also plans to develop in India. BHP Billiton plans to purchase a 51% stake in the alumina project of ashapura minechem in Orissa. Ashapura will hold the remaining 49%. The refinery has a total value of Rs 250 crore.



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