Mining giant Rio Tinto (ASX:RIO) has been offered US$500 million to sell its aluminium smelter in northern France to United Kingdom metals company Liberty House. "Our detailed analysis leads us to believe that Dunkerque is the best location to drive forward our downstream automotive strategy".
"Aluminium Dunkerque has a high-quality aluminium operation benefiting from a top-class workforce and management".
The company said the offer includes plans for modernization of the site.More news: Reggie Lynch's lawyer compares '#MeToo' movement to Japanese internment camps
The firm intends to develop the plant into an worldwide centre of aluminum and downstream aluminum products expertise, demonstrating its GREENALUMINIUM strategy. "This investment will help fulfil our ambitions in the sector, further enabling us to capitalise fully on expected growth in demand for aluminium over the coming years".
Rio Tinto Chief Executive Jean-Sebastien Jacques, who took charge in July 2016, is moving to divest all but the company's best-performing units.
In a nod to economic policies pursued by French President Emmanuel Macron's government, Gupta said: "We are particularly attracted by the pro-business environment that President Macron's France is quickly building".More news: Activision Blizzard confirms closure of U.S. distribution hub
Liberty House submitted a binding offer to Rio Tinto regarding the company's Dunkirk aluminum smelter, kicking off a consultation process involving employees, European works councils and other stakeholders in the plant.
The Dunkerque acquisition will further build Liberty House's aluminium base in Europe, following its acquisition in December 2016 of Rio Tinto's aluminium smelter in Lochaber, Scotland, in which it is now investing 120 million pounds.
The GFG Alliance, a $10 billion metals, industrials and energy group, has been snapping up distressed industrial assets in Britain, Australia and the United States in the past few years.More news: Fossils show butterflies appeared on Earth before flowers