Business News
Alcoa Inc. Partners with Chinalco to Acquire a 12% Stake in Rio Tinto
Friday 01. February 2008 - Alcoa Inc. (NYSE: AA) announced today that it is partnering with Aluminum Corporation of China ("Chinalco") to acquire 12 percent of the UK common stock of Rio Tinto plc. Alcoa will contribute up to $1.2 billion to the total investment.
Commenting on the investment, Alain Belda, Alcoa Chairman and Chief Executive Officer, said, “We have long believed that Rio Tinto has a world-class portfolio of assets and is very well positioned to prosper in the current mining cycle. This investment, made in partnership with Chinalco, allows us to mutually benefit from developments in the sector. We have known Chinalco for many years, dating back to our participation in the successful launch of Chalcos IPO, and are looking forward to this new venture.”
The investment will be made through a Special Purpose Vehicle, called Shining Prospect Pte. Ltd. (“SPPL”) created for this purpose. SPPL is based in Singapore and wholly owned by Chinalco. Through its investment, Alcoa will acquire an equity stake in SPPL commensurate with its cash contribution to the investment.