Sep 15 2009
Rio Tinto has taken the first step in divesting its downstream Alcan Engineered Products business by agreeing to the sale of 56 per cent of its Cable division to Platinum Equity. Rio Tinto Alcan will remain a key supplier of aluminium rod and molten aluminium to Cable’s plants in North America.
Guy Elliott, chief financial officer, Rio Tinto, said “This is the first time we have entered an agreement with a private equity partner and we look forward to working with them. This offers a good solution to Rio Tinto as we will be able to step back from day to day management of the business but retain an economic interest in its recovery as market conditions improve.”
Cable is a high quality manufacturer of aluminium energy cable products with more than 100 years of participation in the North American market. Today, the business has seven production sites in the USA, Canada and most recently China, serving the utility transmission and distribution markets as well the residential and non-residential construction markets.
The terms of the sale are confidential. The transaction is expected to close in several weeks, following completion by the parties of various conditions precedent to closing.