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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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