Alcoa has announced that it is to offer to acquire all of the outstanding common shares of Alcan for $58.60 in cash and 0.4108 of a share of Alcoa common stock for each outstanding common share of Alcan. Alcoa expects to begin its offer on 8 May 2007.
Based on Alcoa’s closing stock price on 4 May, the offer has a value of $73.25 per Alcan share or approximately $33bn in enterprise value.
According to Alcoa, the acquisition would bring together a complementary portfolio of businesses, and benefit from a broader talent base, enhanced research and development expertise, and shared values. The companies also intend to work together on expansion and modernisation projects.
The combined company intends to use its increased financial resources to fund research and development projects to reduce emissions of greenhouse gases and improve the efficiency of the smelting process. It will also pursue new technologies designed to facilitate low cost aluminium production.
Engineering industry reacts to Reeves' budget
I´d have to say - ´help´ - in the longer term. It is well recognised that productivity in the UK lags well behind our major industrial competitors and...