Alcan to divest packaging division

London-based mining company Rio Tinto has offered to acquire the outstanding common shares of Alcan Inc., an aluminum and packaging supplier headquartered in Montreal, Que.

As part of the deal, which is valued at US$38.1 billion, the two companies have agreed to divest Alcan’s packaging operations.

“Rio Tinto intends to retain its focus on mining and metals activities by the divestment of Alcans Packaging division, as jointly agreed with Alcan,” explained Rio Tinto chief executive Tom Albanese in the official press release announcing the offer.

Alcan Packaging serves the food, beauty, pharma and tobacco packaging markets, using materials such as plastics and paperboard. The packaging division employs 31,000 people at 129 sites in 31 countries.

“Alcan Packaging will have better opportunities for development and success following its divestiture and we will ensure a smooth transition for all involved,” said Alcan president and CEO Dick Evans.