Mining giant Rio Tinto has received a binding offer for its specialty aluminas business from HIG.
The companies have agreed a period of exclusivity and Rio Tinto will respond to the binding offer following consultation with the relevant European works councils.
Guy Elliott, Chief Financial Officer of Rio Tinto said: "The potential sale is in line with our strategy of continuing to streamline our aluminium group through the divestment of non-core assets."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
No details were given of the terms of the offer.
Rio Tinto took a massive $8.9bn impairment charge relating to its aluminium businesses in 2011, causing net earnings to sink by 59% to $5.8bn.
With the impairment charge largely relating to the $44bn (including debt) acquisition of Alcan in 2007, Chief Executive Tom Albanese announced that he would waive his annual bonus in respect of 2011. "As the acquisition of Alcan happened on my watch, I felt it only right not to be considered for an annual bonus this year," Albanese explained.
NR
