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Century to buy Alcan’s Kentucky smelter
April 30, 2013 - 17:22 GMT
Rio Tinto Alcan
Big Rivers Electric Corp.
Century Aluminum has agreed to acquire Rio Tinto Alcan’s smelter in Sebree, Kentucky, for $61 million in cash and the assumption of $4 million in liabilities, the companies said April 29.
Under the terms of the deal, Monterey, California-based
Century will receive $71 million in working capital while
Montreal-based Rio Tinto Alcan will assume all past
environmental liabilities and has agreed to fully fund the
operation’s pension plan. The transaction remains
subject to closing conditions but is expected to be completed
by the end of June, Rio Tinto Alcan said. Sebree has been a
"solid operation" and should remain so under
Century’s ownership, the company said. Rio Tinto
Alcan declined to comment beyond a news release. Rio Tinto
Alcan announced plans in 2011 to divest 13 assets, including
the Sebree smelter. The Sebree acquisition comes as Century
also announced that it had reached a tentative power agreement
for its smelter in Hawesville, Kentucky. Metal Bulletin sister
title AMM reported in February that Century was interested in
acquiring the Sebree smelter. Market participants suggested at
the time that if both facilities were...
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