BusinessCompany NewsRio Tinto raises $40bn for Alcan offer

Rio Tinto raises $40bn for Alcan offer

Dual-listed mining titan brings in record-breaking amount to bankroll its purchase of Canadian rival, despite choppy market conditions

Rio Tinto has brought in $40bn from lenders to drive its merger with Canadian
mining firm Alcan.

The FTSE100 company, operating under a dual-listed structure in the UK and
Australia, announced a
$38.1bn
cash offer
for its rival in July and has successfully raised the funds,
despite the current credit crunch.

It is believed to be the largest loan ever secured by a UK-quoted company,
according to investment banking data provider Dealogic.

This latest favourable development comes in the wake of Rio settling a
AUD$515m (£218m) franking credit battle with the
Australian taxman.

On completion of the deal, Rio Tinto Alcan, as it will be known, will be
headquartered in Montreal, and FD Guy Elliott is expected to continue overseeing
financial operations.

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