Rio Tinto receives US$340 million binding offer for talc business
Rio Tinto has received a binding offer from Imerys to acquire its talc business for an enterprise value of US$340 million. A period of exclusivity with Imerys has been agreed, and Rio Tinto will respond to this binding offer following consultation with the relevant European works councils.
Guy Elliott, chief financial officer, Rio Tinto said, “The successful sale of our global talc business would deliver good value to our shareholders and remains aligned with our strategic focus on large scale assets. As a leading supplier of industrial minerals, Imerys is well positioned to enable the ongoing success of the talc business.”
The talc business has about 1,000 employees at 24 locations in Europe, North America, Australia and Asia.
Completion of the contemplated transaction is subject to customary closing conditions, including applicable regulatory approvals.
Since 2008, Rio Tinto has completed more than 18 divestments in excess of US$11 billion.
About Rio Tinto
Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.
Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.
The world leader in adding value to minerals, Imerys is active in 47 countries through more than 240 industrial and commercial sites. The Group achieved more than €3.3 billion in sales in 2010. Imerys develops solutions that improve its customers’ product performance and manufacturing efficiency, thanks to minerals it mines and processes from reserves with rare qualities. The Group’s products have a great many applications in everyday life, including construction, personal care, paper, paint, plastic, ceramics, telecommunications and beverage filtration.