Rio Tinto hires Credit Suisse to sell Pacific Aluminium assets
Rio Tinto, the Anglo-Australian listed mining giant, has hired Credit Suisse to sell its Pacific Aluminium (PacAl) unit, the Financial Times reported. The potential sale of the non-core antipodean smelting assets could raise USD 1bn, the report said, citing individuals close to the matter who said Credit Suisse is looking for a buyer.
The people knowledgeable about the situation said the sale process is at an early stage; Rio Tinto declined to make any comment, the item reported.
Rio attempted to dispose of PacAl previously but terminated the process two years ago when the lossmaking business failed to attract significant interest, the report said. It noted that since that time the aluminium market has rebounded, improving PacAl’s earnings and prospective sale value.
The New Zealand and Australia-based subsidiary has USD 2.5bn revenues and its EBITDA increased to USD 524m last year from USD 252m 12 months earlier, the report said.
Financial Times