Rio Tinto makes bid to buy Alcan in $38bn Deal

Melbourne-based Rio Tinto has reached an agreement to make an offer on Canadian aluminium company Alcan in a $38.1bn deal, creating the world's biggest aluminium company.

The merger is expected to be called Rio Tinto Alcan with headquarters in Montreal, Canada where Alcan, which has joint ventures in 61 countries and regions, is based.

Rio Tinto and Alcan's combined access to significant bauxite reserves, alumina refining, low-cost hydro power and smelter technology will provide the merger with the capacity to produce around 4.4 million tonnes of aluminium every year.

Rio Tinto has a large-scale programme of capacity growth in place following the recent announcement of the expansion at Rio Tinto's Yarwun alumina refinery, and the ongoing bauxite capacity expansion at Weipa.