Here is Rio Tinto (worlds 3rd largest mining company) news release on their acquisition of Canadian producer Alcan – the world’s second largest aluminum producer. This is process where the industries primary smelters consume calcined anode (low sulfur & metals) petroleum coke at rate of ~ 0.4 metric tons coke used per ton primary Aluminum produced. The acquisition will make Rio the world’s largest Aluminum company now.
Cash rich mining companies like Rio have been expected to make acquisitions in a lot of the metal production sectors & Alcan is another good choice for Rio. Rio’s production of Bauxite ore & Alumina used in the smelting process puts the Alcan smelters on a better footing with the Alcoa smelters. This recent Rio Tinto bid follows a failed hostile takeover bid for Alcan. <Alcoa is former par
The financial recaps say that Rio paid $38.1 Billion for Alcan a Canadian Aluminum producer based in U.K. and whose stock will be de-listed last week. Rio already owned ~11% of Alcan & had to purchase the remaining 88.8% to complete the acquisition. I think Alcan has 22 Aluminum smelters in 11 countries, six bauxite mines & five Alumina refineries.
As a background – This recent Rio Tinto successful bid follows a previous failed hostile takeover bid for Alcan by former parent Alcoa (May 2007 for ~$27B). Alcan was split off its former parent as Canadian branch of Alcoa in 1928 and became a separate company, and registered under the Alcan name in 1945.
Alcan acquired French based Pechiney in 2004 for ~$4 Billion (after a lot of challenges from France & EU anti-trust review) and at the time Alcan & Pechiney were two of the four largest smelters (behind Alcoa & Rusal) in the world. Pechiney also had extensive Packaging & Carbon Anode Technology business <Carbon Anodes = the smelting current conducting blocks made from baked calcined anode coke (from cokers) and Coal Tar Pitch, that are used to melt the Alumina>