MONTREAL — After assuring there will be net benefits to Canada, Rio Tinto has received Industry Canada's approval of its $38.1-billion takeover of aluminum giant Alcan Inc., ending the global approvals process.
The offer to shareholders is scheduled to expire next Tuesday.
Industry Minister Jim Prentice gave the green light under the Investment Canada Act, London-based Rio Tinto said Thursday.
''This important step recognizes that we have committed to bring significant benefits to Canada as a result of this transaction,'' Rio Tinto CEO Tom Albanese said in a release.
''Rio Tinto has been an investor in Canada for decades and is dedicated to growing the combined Rio Tinto Alcan presence, which will be headquartered in Canada and will be positive for Canadian jobs, investment and research and development.''
Rio Tinto said it obtained Canadian government approval approval by demonstrating that its acquisition of Montreal-based Alcan would be of net benefit to Canada.
''In doing so, Rio Tinto has provided to the minister several important undertakings in relation to Alcan's operations and employees in Canada, including establishing the new global aluminium leader's headquarters in Montreal, ensuring that a majority of Canadian based senior managers are Canadian, creating a shared services hub in Montreal and ensuring robust R&D employment and expenditures,'' he company said.
''Rio Tinto has also made major capital expenditure commitments on projects such as the AP50 pilot plant in Quebec and the Kitimat modernization in British Columbia.''
In addition to the chief executive of Rio Tinto Alcan, Dick Evans, Rio Tinto will appoint two of the Canadian non-executive directors of Alcan to its board.
''Further, Rio Tinto will be making significant contributions to Canadian communities, including the creation of a major charitable foundation, demonstrating Rio Tinto's dedication to Canada,'' the firm said.
Rio Tinto is a major international mining group combining Rio Tinto PLC, a London-listed company, and Rio Tinto Ltd., listed on the Australian Securities Exchange.